Payday Loan Debt Help — Freeze Interest with Breathing Space

Payday loans snowball fast. Use Breathing Space to pause most enforcement and freeze most interest/fees while we set one affordable payment (DMP, IVA or DRO) that protects your essentials. Learn how to cancel a CPA and stop card “sweeps”, and read our refund & complaint guidance.

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Reviewed by: Fresh Start Debt Support team • Last updated • Free & confidential guidance • See our Breathing Space guide

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Payday loans out of control? Here’s the safe way out.

Stabilise first, then choose a plan

High costs, rollovers and repeated card sweeps can trap you quickly. We’ll stabilise things with Breathing Space, cancel continuous payment authorities (CPAs), and move multiple debts into one affordable plan that prioritises council tax, energy and housing first. If you’ve had repeat loans or top-ups, check refund options while we protect your essentials.

Heads up: FCA rules cap the total cost of high-cost short-term credit and limit rollovers. We’ll explain how this applies to you below.

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Breathing Space — pause most enforcement, freeze most interest

Why it’s the first step

Standard vs Mental Health Crisis route

In England & Wales, the Debt Respite Scheme gives up to 60 days of protection on qualifying debts. During that window, most enforcement is paused and most interest/fees are frozen while you set your plan. There’s also a Mental Health Crisis route that lasts for the treatment period plus 30 days. Use this window to build a defendable budget and choose DMP/IVA/DRO.

Breathing Space isn’t a payment holiday — keep making affordable payments where possible. We’ll prioritise rent/mortgage, council tax and utilities, and then share a fair amount across other creditors.

Check Eligibility

Stop payday lenders taking money — cancel the CPA

What is a CPA and why cancel it?

Your card issuer must help

Payday lenders often collect via a continuous payment authority (CPA) on your card. If funds are short, repeat attempts can hit essentials. You can cancel a CPA with your bank/card provider — even if the lender disagrees — and ask for written confirmation. Consider a safe basic account away from affected lenders to protect income. Then roll the debt into one fair plan.

Script for your bank:
“I’m cancelling the continuous payment authority to [lender] immediately. Please block further payments and confirm in writing today.”
Cancel CPA Now

Payday loan refunds — irresponsible lending complaints

When a complaint may be worth it

Evidence that helps

If loans were repeatedly rolled over, topped up, or obviously unaffordable, you may be able to complain. Where upheld, lenders may refund interest/charges and adjust balances. We’ll help you map the timeline, pull statements and submit a clear affordability complaint. If the lender doesn’t resolve it within eight weeks, you can escalate to the Financial Ombudsman Service.

Complaints/refunds run separate to your debt solution — we’ll keep you protected with Breathing Space and a plan while the complaint proceeds.

Check Refunds

Which route works best with payday loans? (DMP · IVA · DRO)

One affordable payment, realistic expectations

How each route treats interest/fees

DMP: Informal and flexible; many lenders freeze/reduce interest when your budget is realistic (not guaranteed).
IVA: Formal, legally binding; interest/charges typically frozen, and remaining qualifying unsecured debt can be written off at completion.
DRO: For low income/low assets within set criteria; qualifying debts are written off after 12 months (the application fee has been removed).

We’ll build a defendable budget that protects housing, council tax and energy before offering fair payments to non-priority creditors.

Find My Route

Payday loan debt help “near me” — local & remote options

Fast set-up, credible support

Phone/video makes it simpler

Prefer local? We can signpost while handling most steps remotely to save time. Many people choose phone/video to manage evidence, scripts and budgets quickly — especially around work or childcare. Wherever you are, you’ll get the same calm, compliant process.

Find Local Help

Priority vs non-priority — protect your home & essentials first

Why this order matters

What to fund before offers

Payday loans are non-priority. Fund rent/mortgage, council tax, gas/electric, water and food first, then offer a fair share to other creditors through a plan. This reduces risk and makes lenders more likely to accept reduced payments. See our guides on council tax arrears and utility bills.

Build My Budget

Payday loan rollovers & charges — know the limits

Rollovers capped, overall cost capped

Why repeated extensions are risky

UK rules limit payday loan rollovers and cap the total cost of high-cost short-term credit at 100% of the amount borrowed. Late fees are also capped and lenders must follow conduct rules. If you’ve been rolled over multiple times or struggled to repay, consider a complaint and switch to one affordable plan.

If you’ve had repeated rollovers or multiple CPA attempts, that’s a red flag — include this evidence in any affordability complaint.
Fix Rollovers

Do payday loans affect your credit score?

Missed payments & defaults hit hardest

Stabilise first to protect your file

If you miss payments or default, your credit file will reflect the arrears/default and it can make future borrowing more difficult. Even if paid on time, some lenders treat payday borrowing as a risk flag. Stabilising with Breathing Space and a fair plan helps stop fresh negatives while you rebuild.

We’ll help you avoid new missed payments by prioritising essentials and setting one realistic monthly amount.
Protect My Score

When debt collectors chase a payday loan

Prove-it, hold action, set a plan

What to say and keep

Keep letters, screenshots and statements. If a collector contacts you about a debt you don’t recognise, ask for evidence of liability and balance. With Breathing Space, most new enforcement pauses while we share your plan and budget. Use our debt collection guide and stop collectors tips.

Stop Calls

Payday loans — repayment vs protected plan estimator

See why a protected plan can help

Rough timescale (no interest)

Estimate how long you’d take to clear balances without help vs. setting one affordable payment:

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Complaint steps: payday loan affordability

Simple sequence to follow

Template + evidence list

1) Write to the lender using our template (below). Explain why the borrowing was unaffordable (repeat rollovers, top-ups, tight budget, essential bills missed).

2) Attach bank statements and a simple income/expenditure snapshot. Keep a timeline of loans with dates and amounts.

3) If no fair resolution in eight weeks, escalate to the Financial Ombudsman Service (you can still continue your debt plan while it’s investigated).

Helpful guides: Breathing SpaceAbout DMPsAbout IVAs
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Template: cancel CPA & affordability complaint

Generate your script/letter

Copy/paste and send today

Use these quick generators to draft a CPA cancellation to your bank and an affordability complaint to your lender. Personalise the fields and paste into your email app.

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Independent guidance (use alongside our help)

Trusted sources

Learn more while we set up

Review official explainers on payday loans and Breathing Space while we set up your plan:

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Payday loan debt — frequently asked questions

Will Breathing Space stop calls and bailiffs immediately?

Once entered, most new enforcement is paused and contact should reduce while you set a plan. Some communications may still be needed for updates and legal notices.

Check Eligibility

Can I include payday loans in a DMP or IVA?

Yes, they’re typically included as unsecured debts alongside cards, overdrafts and catalogues. See our pages on DMPs and IVAs.

Roll Into One

Should I pay payday loans before council tax or energy?

No — protect essentials first. Then share a fair amount across non-priority creditors through a plan. Read our council tax and energy arrears guides.

Prioritise Budget

What about refunds for irresponsible lending?

If affordability checks were poor, you can complain. We’ll help you gather evidence and understand likely outcomes and timelines.

Check Refunds

I’m in Scotland — are options different?

Yes (e.g., moratorium, Trust Deeds, DAS). Tell us your postcode and we’ll signpost correctly.

Scotland Help

Ready to stop the payday loan spiral?

Simple, calm and confidential

Use Breathing Space to pause pressure, cancel CPAs to protect essentials, and move everything into one affordable payment. We’ll draft scripts, handle paperwork and keep your plan defendable.

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What people say

Independent feedback
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In Scotland? Routes differ slightly

Trust Deed, DAS & moratorium

Tell us your postcode

If you’re in Scotland, the moratorium, Trust Deeds and the Debt Arrangement Scheme (DAS) work differently to England & Wales. We’ll signpost you to the correct route and still help you stop CPAs, stabilise priority bills and set one affordable payment.

Scotland Help

Safe bank account — protect your income

Ringfence wages/benefits before offers

Basic accounts are enough

Open a basic account with a bank unconnected to your lenders. Move income and essentials (rent, council tax, utilities) there. After CPAs are cancelled, switch regular payments over. This prevents “card sweeps” disrupting priority bills while we set your plan.

Secure Income
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