If things go wrong
What to do if you cannot make a repayment
Who to tell, when to tell them, and the free help available. Acting before the payment date gives you the most options.
Written by the UKPayday editorial team
Updated 16 July 2026
11 min read
The short version
- Contact the lender before the payment date, not after.
- Protect rent, Council Tax, energy and food first.
- Only agree to a payment you can genuinely afford.
- Free debt advice is available and independent.
If you know you cannot make a loan repayment, contact the lender as soon as possible. You do not need to wait until the payment has been missed.
Acting early gives the lender more time to understand what has happened and consider suitable support. It can also help you protect money needed for your rent, mortgage, Council Tax, energy, food and other essential costs.
Missing a payment can feel serious, but ignoring it usually makes the situation harder. A clear conversation with the lender is the best place to start.
Contact the lender before the payment date
Use the contact details on your credit agreement, account statement or lender website. Tell the lender that you are in financial difficulty and may be unable to make the next payment in full.
The Financial Conduct Authority says firms must treat customers who are in or approaching arrears with forbearance and due consideration. A customer can be approaching arrears as soon as they tell the lender that they are at risk of missing a payment.
This means you can ask for help before the account falls behind. The lender should consider your individual circumstances, but it does not have to agree to every request you make.
When you make contact, explain:
- Your name and account reference
- The payment you cannot make
- Why your circumstances have changed
- Whether the problem is temporary or likely to continue
- When you expect your position to improve
- What you can realistically afford
Be honest. Promising a payment you cannot make is unlikely to help. If you cannot currently afford anything after essential costs, say so.
Speak to the lender, not UKPayday
UKPayday is a credit broker, not a lender. We do not provide the money, collect repayments, manage loan accounts or decide what support can be offered.
If your loan was found through UKPayday, you must contact the lender named in your credit agreement. You may also find its name on your bank statement, payment confirmation or previous emails.
If you cannot identify the lender, check the documents sent when you accepted the loan. You can contact UKPayday for help understanding which business received your details, but only the lender can change a repayment arrangement.
Work out what you can actually pay
Before agreeing to a new amount, make a short budget.
Write down the income you expect to receive and the essential payments due before your next income date. Include rent or mortgage payments, Council Tax, energy, water, food, travel, childcare, medication and any other unavoidable costs.
You should also include priority debts. These are payments where falling behind can have particularly serious consequences.
An unsecured loan repayment should not leave you unable to pay for food, heating or housing.
FCA guidance says a repayment arrangement is unlikely to be sustainable if it prevents a customer from paying priority debts and essential living expenses. The FCA lists mortgage payments, rent, Council Tax, food and utility bills among these costs. The full position is set out in the FCA rules on customers in financial difficulty.
Do not offer all the money left in your account if you will need some of it for essential spending before you are next paid.
Put important bills first
Some unpaid bills carry more serious consequences than an unsecured personal loan.
Priority payments can include:
- Rent or mortgage arrears
- Council Tax or Rates
- Gas and electricity
- Court fines
- Child maintenance
- Tax debts
- Essential hire purchase payments
The exact position depends on the debt and where you live in the UK. MoneyHelper has a bill prioritiser that can help you understand which payments need attention first.
This does not make the loan repayment disappear. It means you should not agree to an arrangement that creates a more serious problem elsewhere.
What support could the lender consider
The right support depends on why you are struggling, how long the problem may last and what you can afford.
Possible forms of support may include:
These are possible options, not promises. The lender must consider what is appropriate for your circumstances.
Ask how any arrangement would affect the amount owed, the loan term and your credit file. A lower payment can be helpful now but may keep the account open for longer. You need to understand the complete effect before agreeing.
Get any new arrangement in writing. Check the amount, payment dates, duration and treatment of interest and charges.
If the payment is due today
Contact the lender immediately using the quickest available method. Telephone or online chat may be faster than email when collection is close.
Tell the lender what you can afford without risking essential bills. Ask whether the payment can be stopped, reduced or moved while your circumstances are reviewed.
Do not assume that sending an email will automatically stop an automatic collection. Confirm what will happen to the scheduled payment.
If you contact the lender by phone, write down the date, time, name of the person and what was agreed. Ask for written confirmation.
Recurring card payments
Some lenders collect repayments using a recurring card payment. This is also known as a Continuous Payment Authority.
If a collection would leave you without money for essentials, contact the lender at once. You can ask the lender to cancel the authority. If it does not help, you can ask your bank or card provider to stop the recurring payment.
MoneyHelper states that you should cancel before the end of the working day before the payment is due if you want to stop it being taken. You can read its guidance on short term loan payments.
Cancelling the payment authority does not cancel the loan or remove the debt. The payment may still become overdue, charges may apply and your credit record may be affected. You should continue speaking with the lender about an affordable way forward.
If the payment has already been missed
Contact the lender now. It is still possible to ask for help after the due date.
Find out:
- How much is overdue
- Whether interest or charges have been added
- Whether the missed payment has been reported to a credit reference agency
- What support is available
- What the lender needs from you
Do not wait for the lender to make repeated contact. Reply to letters, emails and notices, even if you cannot pay the amount requested.
If you receive a formal notice, keep it and note any date by which you need to respond. Free debt advice can help you understand it.
What a missed payment can lead to
A missed repayment may be recorded on your credit file. This can make future borrowing harder or more expensive.
The lender may also add interest or charges where the agreement and applicable rules allow. It may contact you to discuss the arrears and could eventually use a debt collection business.
If the debt remains unresolved, further recovery or court action may be possible. This does not normally happen without notices and earlier attempts to resolve the account.
Do not ignore correspondence because it looks serious. Opening it and getting advice early gives you more time to respond.
Do not borrow again just to make the payment
Taking another loan to repay the first one can turn a temporary shortage into a repeated borrowing problem.
You may make the immediate payment but still have the new loan to repay, often with added interest. If your income has not increased or your costs have not fallen, the underlying gap remains.
Avoid applying to several lenders in quick succession. Applications may result in searches on your credit file and further borrowing may increase the pressure on your budget.
Speak to the existing lender and a free debt adviser before using new credit to deal with arrears.
Be careful about extending the loan
A lender may discuss changing the repayment term or refinancing the debt. A longer period can lower each payment, but it may increase the overall cost.
Ask for the following information before agreeing:
- The new repayment amount
- The number of payments
- The new payment dates
- Any added interest or charges
- The new total repayable
- The effect on your credit file
The new arrangement must be sustainable. A smaller payment is not a solution if it still prevents you from covering essential living costs.
Tell the lender if you need extra support
Financial difficulty can be linked to illness, disability, mental health, bereavement, job loss, caring responsibilities, relationship breakdown or another major change.
Tell the lender about anything that affects your ability to manage the account or communicate. You only need to share information that is relevant and that you are comfortable providing.
The lender may have a specialist support team. You can ask it to communicate in a way that works for you, allow more time or deal with a trusted person who has your permission.
If speaking by phone is difficult, ask whether you can use email, web chat or another written method. A family member, friend or debt adviser may also be able to help you communicate.
Keep a clear record
Keep copies of emails, letters, account statements and any budget you provide.
For telephone calls, record:
- The date and time
- The number called
- The name of the person you spoke to
- The support requested
- What the lender offered
- Any action you agreed to take
Written records reduce confusion and can help if you later need to complain.
Check every new arrangement carefully. If it does not match what was discussed, contact the lender immediately.
When to get free debt advice
Speak to a free debt adviser if you cannot afford several payments, have already fallen behind on important bills or do not know which debt to deal with first.
You should also get advice if the problem is likely to last, you are using credit for normal living costs or you feel unable to manage contact from several creditors.
A debt adviser can review your full position, help with a budget, explain available options and sometimes speak to creditors for you. They can also explain any formal protections or debt solutions available in your part of the UK.
MoneyHelper provides a free debt advice locator to help you find confidential support.
Be cautious about businesses that charge for debt help when free advice is available. Do not pay an upfront fee or share bank details with an organisation you have not checked.
If you believe the lender is treating you unfairly
The lender should consider your circumstances and treat you with forbearance and due consideration. This does not mean it must write off the debt or accept any amount you suggest.
If you believe the lender has ignored your financial difficulty, pressured you to pay money needed for essentials or refused to consider an affordable arrangement, make a formal complaint to the lender.
Explain what happened, provide relevant evidence and state what you want the lender to do. Keep a copy of the complaint and its response.
If the lender does not resolve the matter, you may be able to refer the complaint to the Financial Ombudsman Service. You normally need to complain to the lender first. The Financial Ombudsman complaint guide explains the process and time limits. Its service is free.
A simple action plan
If you cannot make a repayment, take these steps:
- Contact the lender as early as possible.
- Explain why you cannot pay and whether the problem is temporary.
- Protect money needed for priority bills and essentials.
- Work out what you can genuinely afford.
- Ask the lender to consider suitable support.
- Get any new repayment arrangement in writing.
- Keep records of every conversation and message.
- Contact a free debt adviser if more than one payment is affected or the problem is continuing.
The worst response is silence.
You do not need to have every document or every answer before contacting the lender. Start the conversation, give accurate information and do not agree to a payment that leaves you unable to meet essential costs.
Warning: Late repayment can cause you serious money problems. For help, go to MoneyHelper.
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