Stuck in a payday loan cycle? Here's how to break free

Payday loans look like a quick fix but can trap you in a cycle of borrowing. Here's how to break free.

Why the cycle is hard to break

You borrow £300 before payday. On payday, the lender takes £360 (£300 plus fees). You're now short again, so you borrow another £300. This repeats every month — you're effectively paying £60/month for nothing.

Step 1: Stop the continuous payment authority

Payday lenders set up a **Continuous Payment Authority (CPA)** on your card. You can cancel this:

Step 2: Contact the lender

Once the CPA is cancelled, contact the lender and offer an affordable payment plan. Under FCA rules, they must treat you fairly if you're in financial difficulty.

Step 3: Check if you can complain

If any of these apply, you may be able to get money back:

Complain to the lender first, then the **Financial Ombudsman** if they reject your complaint.

Step 4: Consider a formal debt solution

If you have multiple payday loans:

Free help

You can break the cycle. Start by cancelling the CPA today.