What to do if you can’t repay your payday loan

Find out what you can do when you think you've run out of options.

Short-term loans, or payday loans as they're commonly known, can be convenient ways to fund gaps in your budget. While they are convenient, they can be costly, so it's important to work out if you can afford the loan you're applying for before you submit your application.

If you do find yourself worrying about making your next repayment, read through the guide below to find out what you should do.

Step 1: Contact your lender

Letting your lender know as soon as possible will give you the best chance of finding a solution. Lenders have financial hardship departments or (at the very least) customer service agents that will be able to delay your next direct debit repayment. This will stop your bank and the lender charging you for a failed direct debit payment.

Following this, your lender will make arrangements with you which may involve an extended repayment plan or something similar.

Step 2: Budget to repay the loan

After you arrange your extended repayment with your lender, you'll need to budget to meet your repayment. Ensure you will have enough money in your account by the new scheduled due date.

Step 3: Review your situation

If you have reviewed your situation and find you cannot repay the loan, it's time to get back in contact with the lender to discuss your hardship options. This may involve extended the terms further or providing you with a payment plan. This is an important step to take if you don't want a default listed on your file.

What not to do

  • Take out another loan. Applying for an additional payday loan is an easy way to get stuck in a cycle of debt. If you are having trouble repaying one payday loan then it will likely multiply your problems by applying for another.
  • Ignore the repayment. By not calling your lender you will be charged a direct debit dishonour fee both by your lender and by your bank. If you continue to ignore the repayments they may continue to try and debit your account and charge fees, thereby increasing your debt.

Here's what to do if you can't repay your loan with the following brands:

BrandWhat to do if you can't repay your loan
Cash ConvertersContact Cash Converters as soon as possible. Online customers can call 1300 191 637 or email Cash Converters directly. If you've applied for your loan in-store 13CASH (132274) or visit a branch.
Cash TrainContact Cash Train on 08 9420 1480 if you're going to have any trouble repaying your loan. You can also email or chat with a team member on the Cash Train website.
DollarsDirectYou need to contact DollarsDirect immediately by calling 1800 024 858 or emailing DollarsDirect. If the direct debit is returned from your bank DollarsDirect may initiate collections proceedings.
FerratumContact the Ferratum collections team in order to avoid direct debit dishonour fees and rescheduling fees. You can call them on 1300 433 772.
Good to Go Loans Good to Go is able to change loan repayment schedules to better suit your circumstances. You can contact the company on 1300 197 727.
Loan RangerIf you will have insufficient funds in your account on your repayment date, contact Loan Ranger on 1300 411 365 at least 48 hours prior to the due date. You can also apply for financial hardship. If you fail to contact Loan Ranger it will go to collections.
NimbleIf you won't have enough money in your account to cover a repayment, contact Nimble immediately via live chat on its website or by phone on 133 156 to stop the direct debit. If Nimble cannot recover the money within 60 days it may be passed to an external collections team. If you're experiencing financial hardship and cannot repay your loan, contact the Nimble Repayments team.
OK MoneyYou need to contact OK Money on 1300 884 920 or visit an OK Money store to delay your direct debit or apply for financial hardship. If you fail to do so by 2pm Queensland time your account will be direct debited and you will have to pay any fees incurred by the failed direct debit.
Sunshine LoansIf you miss a loan payment or need to reschedule a loan payment you will incur a fee of $30. Contact Sunshine Loans on 07 5526 8866 Monday through Friday 8:30am to 4:30pm Queensland time to discuss rescheduling your loan.
Wallet WizardContact Wallet Wizard on 1300 925 538 if you won't have enough money in your account on your scheduled repayment date.

Picture: Shutterstock

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