This is a commonly searched for question at Debt Advice Blog. The short answer is yes, you should be able to set up a payment plan for your payday loan and I have written an article explaining how to set up a payday loan repayment plan which you can read if you like.
Some payday lenders like Wonga are quite easy to deal with. You can set up a repayment plan with Wonga online and its quite straight forward.
You can set up a pre default arrangement with QuickQuid through their live chat facility. You can find out more about setting up a Quickquid repayment plan on this blog by the way.
Your Credit Rating
Whenever you enter into a repayment plan with a payday loan lender, the likelihood is that your credit rating will be affected. If your credit rating is important to you then you should try to repay the loan. They will mark your account as in an arrangement to pay or worse depending on what happens they could mark it as in default. These types of data on your credit report will adversely harm your chances of being accepted for credit in the future.
Alternative Options for your Payday Loan
If you are just struggling this month, especially with it just being Christmas you might find you can afford to roll over your payday loan until next month. What this means is you would pay just the interest due for this month. So lets say you owe £375 and the interest due is £75 then instead of paying £375 you would just pay £75 this month then £375 next month. If you can do that then it is a good option and your credit rating will remain intact.
However rolling over loans is very costly and if there is no hope of you paying it back next month is just a waste of time. You will be effectively kicking the can down the road or saving the problem for the next month where you will be in the same position.
If there are any other ways to raise the cash to pay off the loan you can do that. For example you could sell your mobile phone if it has any value or maybe ask a family member to help you out. However the chances are you have already thought of that so sorry if I am stating the obvious.
So really if all else has failed you, and you are not worried about your credit score and the implications of that, then setting up a payday loan repayment plan is probably your best option. The link at the beginning of this post will take you to my guide on setting up a payday loan repayment plan. If you have a payday loan with Wonga or QuickQuid, see the posts below.
If you are struggling with other debt alongside your payday loans then it might also be worth considering getting help with your debts. You can contact one of the debt charities via the get debt help page. Good luck.