- Ask about an extended payment plan; some states require lenders to offer one at no extra cost.
- You can revoke permission for a lender to debit your bank account.
- Collectors cannot threaten arrest. Payday debt is a civil matter.
Step-by-step plan
- List every loan: lender, amount owed, due date and fee per renewal.
- Stop taking new loans to repay old ones. That is where the cycle grows.
- Ask each lender for an extended payment plan (EPP). Several states require lenders to offer one, and members of the payday industry’s trade association commit to offering one. EPPs let you repay in installments without new fees.
- Refinance with a credit union. A payday alternative loan (max 28% APR) can pay off a payday loan and turn it into affordable monthly payments.
- Talk to a nonprofit credit counselor. Agencies affiliated with the NFCC offer free or low-cost counseling and can sometimes set up a debt management plan.
- Build a small buffer. Even $100 saved can stop the next emergency becoming a new loan.
Stop automatic withdrawals
If a lender is draining your account, you can revoke the ACH authorization by telling the lender in writing and notifying your bank. You can also ask your bank for a stop-payment order. You still owe the debt, but you regain control of the timing so you can pay rent and food first. If a lender keeps debiting after you revoke, complain to the CFPB.
Your rights with collectors
- Debt collectors cannot threaten arrest or jail, use abusive language or call at unreasonable hours.
- You can ask for written validation of the debt.
- If you are sued, respond to the court papers. Ignoring them can lead to a default judgment.
- Social Security and SSI benefits are generally protected from garnishment by private creditors.
Some companies charge large upfront fees to “settle” payday loans and then do little. Under FTC rules, debt relief companies selling by phone generally cannot charge fees before they settle a debt. Start with a nonprofit counselor.
If the lender is unlicensed
If a lender is not licensed in your state, or charges more than your state allows, the loan may be void or uncollectable in part. Check the license with your state regulator and file a complaint with your state attorney general and the CFPB.
Tried the free options first?If you still need a small short-term loan, you can send one request to our lender network. Compare the cost carefully.
See loan optionsFrequently asked questions
How do I get out of payday loan debt?
Stop taking new loans, ask each lender for an extended payment plan, consider refinancing with a credit union payday alternative loan, and talk to a nonprofit credit counselor.
Can I stop a payday lender from taking money from my account?
Yes. Revoke the ACH authorization in writing with the lender and notify your bank. You can also request a stop-payment order. You still owe the debt.
Can I go to jail for not paying a payday loan?
No. Payday loan debt is a civil matter, and collectors cannot threaten arrest. If you are sued, respond to the court papers.
Is payday loan consolidation a good idea?
Consolidating into a lower-cost loan, such as a credit union PAL, can help. Be cautious of companies that charge upfront fees to consolidate or settle debts.