Get out of the payday loan cycle
Payday loans are built to be repaid in a single paycheck, and when that isn't possible the fees keep stacking up. Here are the ways out, and how to tell which one fits your situation.
Total of credit cards, personal loans and medical bills.
Estimated savingsvs. paying only the minimum*
$15,537
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Free, no obligation, and checking won't affect your credit score. *An estimate, not a quote. Assumptions
How do I get out of payday loan debt?
Start by asking each lender about an extended payment plan, which some states require lenders to offer. Then look at replacing the loans with lower-cost credit, such as a credit union payday alternative loan or a personal loan, or have the balances negotiated as part of a broader debt relief plan. Avoid rolling loans over, which adds new fees each time.
- Understand every way out of the rollover cycle
- Payday loans can be included in our legal debt relief program
- Free, no-obligation evaluation
Why payday loans are so hard to escape
The structure of these loans makes it easy to fall behind and hard to catch up.
Very high cost
According to the CFPB, a typical two-week payday loan with a $15 fee per $100 borrowed works out to an APR of almost 400%.
Rollovers and re-borrowing
If you can't repay in full on payday, renewing or taking a new loan adds another fee while the original balance stays.
Direct access to your bank account
Lenders often take payments automatically, which can cause overdrafts and leave you short for rent and groceries.
Multiple lenders
Borrowing from one lender to pay another quickly turns one loan into several.
Payday loan relief options compared
| Option | How it works | Good fit when |
|---|---|---|
| Extended payment plan | The lender splits the balance into smaller installments, often without extra fees | Your state or lender offers one and you can afford the installments |
| Payday alternative loan (PAL) | A small, lower-cost loan from a federal credit union used to pay off the payday loan | You're a credit union member, or can become one |
| Personal or consolidation loan | One lower-rate loan pays off several payday loans | Your credit and income qualify you for a meaningfully lower rate |
| Legal debt relief program | Attorneys represent you and negotiate payday balances along with your other unsecured debt | You have several payday loans, or payday loans plus credit card or other unsecured debt |
| Credit counseling | A nonprofit counselor builds a budget and may set up a repayment plan | You need help prioritizing bills and creditors |
Availability of extended payment plans and payday lending rules vary by state.
How we help with payday loan debt
Map every loan
List each lender, balance, fee, and due date so you can see the full picture and what it is actually costing you.
Find the lowest-cost exit
Compare payment plans, alternative loans, and debt relief with real numbers before you commit to anything.
Attorney representation
In our legal debt relief program, payday loans are enrolled with your other unsecured debt and your legal team works with each lender.
One plan instead of many lenders
Replace multiple due dates and withdrawals with one monthly deposit that covers payday loans, credit cards, and medical bills together.
Before you take any step
- You can ask your bank to stop a payment and tell the lender in writing that you're revoking permission for automatic withdrawals. You still owe the debt.
- Check that each lender is licensed in your state. Your state's financial regulator or attorney general can tell you.
- Avoid taking a new payday or title loan to pay off an old one.
- Many debt relief programs don't accept payday loans. Ours does, as part of the legal debt relief program; eligibility for each loan is confirmed in your free evaluation.
Common questions
Can payday loans be included in debt relief?
Yes. Our legal debt relief program can include payday and online installment loans along with credit cards and other unsecured debt. Each loan's eligibility is confirmed during your free evaluation.
Can a payday lender take money from my bank account?
If you authorized automatic withdrawals, the lender can attempt them. You can revoke that authorization and ask your bank to stop payments, but the debt remains and the lender can pursue other collection.
Can I go to jail for not paying a payday loan?
No. Failing to repay a payday loan is a civil matter, not a crime. A lender can sue you, and you should never ignore a court summons.
What is a payday alternative loan?
Payday alternative loans (PALs) are small-dollar loans offered by some federal credit unions with capped interest rates and longer repayment terms than payday loans.
See what you could save.
Two minutes, six questions, no obligation. Checking your options won’t affect your credit score.