How to Repay a Payday Loan

Ok, so you had a financial emergency and had to take out a payday loan. You really don’t need any added stress when it comes to the repayment process. Knowing how to repay a payday loan, stress-free is exactly what you need to avoid any unforeseen costs…

Here’s a handy little breakdown of how to pay it back promptly with peace of mind. The whole process will be as painless as possible and you can get on with day to day life worry-free.

How to Repay a Payday Loan, Step 1:

So, you’ve received a payday loan from a direct lender for bad credit. You’ve spent it on what you might need to a crisis. Whether that’s using it to fix your car, replace your microwave, cover your cat’s medical care, sold-out event tickets or pay a mislaid bill.

First of all, you need to make sure you pay it back in time. When you received the payday loan the lenders had the confidence you would be able to. So avoiding hefty interests rates and late payment charges shouldn’t be an issue.

Be sure you know exactly how to repay a payday loan. Carefully reading all the information provided in your confirmation email or letter is a great first step.

Don’t worry if you struggle with reading or remembering this type of information. Printing off the email and highlighting anything you aren’t sure of can help a lot with this. Ask a family member or friend to read it through with you and email your lender immediately with any issues. Contact details will be included in the confirmation letter or email.

Step 2:

As part of the payday loan approval process you will of provided your debit card details. This forms the agreement that the lenders can take the money owed from your account on an agreed date. The lenders call this a continuous payment authority or CPA.

It is important you make a note of this date!

Here are some ideas to keep track:

  • Add the date to your smartphone or device calendar with an alarm set.
  • Download a reminder or countdown app
  • Pop a post-it on your computer at work.
  • Pin it to/draw it on a corkboard/chalkboard.
  • Paint it on your bedroom wall.
  • Tattoo it on your forehead (not recommended).
Image Credit: ineverkissedadog Design Studio.

Do whatever you need to do and to be sure that the correct amount of money is exactly where it should become that date. You can improve your credit for future lending by paying your payday loan back on time.

How to Repay a Payday Loan, Step 3:

Finally, make sure you have the money ready in your account. For example, your payday is on the 31st, you’ve agreed the lenders can debit the money for the payday loan from your account on the 3rd after. You need to make sure you don’t overspend on anything before that date.

The best way to make sure of this is to write out a budget or download a budgeting app on your smartphone. Breakdown all your bills and essentials along with dates of direct debits and standing orders. Sign up for online banking if you haven’t already and keep an eye on what’s coming in and going out of your accounts.

Set a personal goal to pay off the payday loan on time. Also, remember that paying it off will alleviate so much unnecessary stress for you down the line. It will feel like an achievement and teach you valuable money management skills that you can take with you into the future.

Late repayment can cause you serious money problems. For help, go to