I’m a UK Student That Took Out Payday Loans. What Can I Do Now? – Alex

“Dear Jon,

Hi, I am a student, and was lead to take out payday loans as I didn’t have enough money, at the time I had a part time job so was able to pay them back. I then lost my job, and couldn’t pay my loan back, and I just kept getting more loans out (stupidly). I now have 5 creditors, and I owe about £5000. They are sending me threatening letters, saying how this is going to affect the rest of my life.

I need some advice on what steps I can take? This will be much appreciated!



Are all the loans payday loans? And are they set-up to automatically come out of your account, like a standing order or direct debit?

If so, the first thing to do is to stop allowing them access to your account, even if you need to open a new basic account at a new bank. You need to be able to have control over what money you have and not have it automatically be paying the loans and then needing to take out more loans.

That is the easy part, unfortunately from there on, it can get a bit more challenging; challenging in the fact you may have to put up with some unpleasantness as the lenders try to collect the money.

Your options will depend on what you can realistically afford to pay each month towards the debts. If it is only a few quid a month to each lender, then setting up a token payment arrangement for a short time is an option. You can get assistance in documenting your situation and what you can pay by completing a detailed income and expenditure form. The lenders must take your token payments, but they can still try to collect more.

Do you own any property or have any assets?

If not, and you cannot afford to pay the loans back as your situation is not going to improve anytime in the near future, like getting a better job, full time wages, etc, you can look at options involving the courts, an Administration Order, possibly a DRO/Debt Relief Order or even bankruptcy. All three are forms of insolvency.

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Dealing with the collection calls can be difficult, but be strong and don’t make any promises you cannot keep and don’t take out any more loans.

Your creditors may threaten you with legal action, CCJ’s, etc, and if this were to occur, the above options such as a DRO, bankruptcy, etc, can help to stop this.

I hope this helps and let me know.



Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

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