Have you checked out the alternatives to a payday loan?

If you’re regularly behind with gas, electric or other utility bills, a payday loan might not be the best option.

Here’s what you can do instead:

1. Read our guide: Talk to the people you owe money to. If you'd like someone to do this on your behalf or need advice find a free debt adviser now. They can deal with a range of debt problems based on your personal circumstances.

2. Contact the energy supplier and explain that you’re struggling to pay them. If you are behind with your payments, your supplier should treat you fairly and allow you to repay at a rate you can afford.

3. For free energy saving advice please contact Energy Saving Advice Service on 0300 123 1234 (for England and Wales) or Home Energy Scotland (external link) on 0808 808 2282 (for Scotland).

Many suppliers offer extra help to customers who can’t pay their bills. It’s very unlikely that you’ll be disconnected if you’re behind with your payments (as long as you don’t ignore your bill). But you MUST talk to your supplier, so phone them straight away if you haven’t done so.

Try not to use a payday loan to regularly pay for everyday essentials when money is tight.

Here’s what you can do instead:

1. Talk to everyone you owe money to and see if they will agree to you paying smaller amounts over a longer period. This will help free up cash to pay for essentials.

   For more help read our guide: Talk to the people you owe money to, or if you’d like someone to help you find a free debt adviser now

2. See if your employer can offer alternative options. If you’re claiming benefits and waiting for your first payment, or if your money is late, you can ask Jobcentre Plus for a short-term advance.

3. Ask family or friends if they can help you. Remember you don’t want to lose a good friend or fall out with a family member because of money. Make sure you draw up an agreement and pay the money back on time. Read our guide: Should you borrow from family and friends?

4. Don’t assume you can’t borrow elsewhere. Even if you’ve got a poor credit rating, there are alternatives to payday loans. And consider using a credit card or authorised overdraft – but only if you’re sure you’ll be able to repay at the end of the month and won’t go over your credit limit. To find out more, read our guide: Alternatives to payday loans

If you take out a payday loan always make sure you know the facts first. Read our guides Payday loans and Payday loan problems

Don’t use a payday loan to regularly pay off other borrowing like credit cards or loans

Here’s what you can do instead:

1. Use our Budget planner to track your income and your spending.

2. Speak to the people you owe money to as soon as possible. They may agree to you making smaller repayments until your financial position improves.

3. Make sure you know your rights. If you’re struggling to pay back a loan or credit card, your lender has to treat you fairly and with consideration. In particular, they should also allow you reasonable time to repay the debt. This may include freezing their interest and charges or agreeing a repayment plan with you.

A free debt adviser can help you with this and advise you on your rights and options. Find a free debt adviser now

Prioritise your bills and agree to repay what you can afford. Read our guide How to prioritise your bills

Never use a payday loan to pay off another payday loan. The interest plus late payment and other charges can accumulate and lead to more serious debt problems

Here’s what you can do instead:

1. Get free, confidential debt advice. The adviser will be on your side and can help you sort out your money problems. Find a free debt adviser now

2. Contact your lender as soon as possible and let them know your situation. If you’re struggling with repayments on a payday loan they have to treat you fairly and with consideration. In particular, they have to give you reasonable time to get free debt advice and repay the debt. This may include freezing their interest and charges or agreeing a repayment plan with you. For further information, read our guide: Problems paying back a payday loan

3. If you’ve agreed a continuous payment authority (also known as a recurring payment), you can cancel it at any time. This may help if you are struggling to pay essential bills but remember, if you do this you will still owe the debt and the lender can go on charging interest and other fees. So it’s essential that you let your lender know and you get free debt advice to help you deal with the loan.

To find out more, read our guide Recurring payments for payday loans

As with any loan buying clothes or things for the home can lead to money problems if you can't repay the loan on time — and there are other options

Here’s what you can do instead:

1. Try to hang on until your next payday to buy the item. Taking out a high interest loan means you’ll end up paying a lot more for it. And if you can’t pay the loan back on time you’ll pay extra interest and late payment charges.

2. Consider buying it second-hand or getting it free from a recycling website like freecycle (external link).

3. Try contacting your local council (external link) if it’s an emergency and you are on income-based benefits. For example if your boiler's packed up in winter, you can’t afford food, or you’ve come out of care, hospital or prison and need help to stay in your own home. You may be given furniture, clothing, white goods, food grants or money. People on the lowest incomes usually have priority.

4. Don’t assume you can’t borrow elsewhere. Even if you’ve got a poor credit rating, there are alternatives to payday loans. Consider using a credit card or authorised overdraft - but only if you’re sure you’ll be able to repay it in full at the end of the month and won’t go over your credit limit. To find out more, read our guide: Alternatives to payday loans

5. Use our Budget planner to find out exactly where your money’s going each month.

Using a payday loan to regularly pay your rent or mortgage can lead to serious debt and put your home at risk

Here’s what you can do instead:

1. Contact your landlord or mortgage lender as soon as possible and explain your situation.

2. Make sure you know your rights. If you have a mortgage and you are struggling with repayments, lenders are required to treat you fairly and with consideration. In particular, they should allow you reasonable time to repay the debt. This may include freezing their interest and charges, and agreeing a repayment plan with you. A free debt adviser can help you do this and advise you on your rights and options.

3. Get free, confidential debt advice. The adviser will help you prioritise your bills, do a budget and may be able to talk to your landlord or mortgage lender on your behalf. Find a free debt adviser now

For more information read Problems paying your rent or Problems paying your mortgage

Try not to use a payday loan to regularly pay for home or car repairs

Here’s what you can do instead:

1. See if the repair or bill can wait until next payday when you can afford it. Or ask for time to pay the bill or negotiate a payment plan.

2. See if your employer can offer alternative options.

3. Ask family or friends if they can help you. Remember you don't want to lose a good friend or fall out with a family member because of money. Make sure you draw up an agreement and pay back the money on time. Read our guide: Should you borrow from family and friends?

4. Don’t assume you can’t borrow elsewhere. Even if you’ve got a poor credit rating, there are alternatives to payday loans. And consider using a credit card or authorised overdraft - but only if you’re sure you’ll be able to repay at the end of the month and won’t go over your credit limit. To find out more, read our guide: Alternatives to payday loans

Using a payday loan to fund your holiday could mean those relaxing days away end up costing more than you bargained for if you can’t repay the loan on time.

Here’s what you can do instead:

1. Pay your holiday bill with a credit card that is offering 0% interest on new purchases. But do not borrow more than you need and make sure you know how you’ll pay it back before the 0% period ends.

2. Find out if an authorised overdraft from your bank until you get paid is cheaper. Make sure you repay it by the end of the month. Read our guide: Overdrafts explained

3. Don’t assume you can’t borrow elsewhere. Even if you’ve got a poor credit rating, there are alternatives to payday loans. To find out more, read our guide: Alternatives to payday loans

Read our hints and tips on how to pay for your holiday

A payday loan can be an expensive way to fund going out and other non-essential spending. It can quickly lead to serious money problems if you don’t repay the loan on time.

Here’s what to do instead:

1. Can you wait until you can afford to go out without borrowing? To find our exactly where your money’s going each month use our Budget Planner

2. Find cheaper ways to meet up with your friends, such as going to free events in your area.

3. Read about other alternatives to a payday loan

Make sure you know the facts before going ahead with a payday loan. Read our guides Payday loans and Payday loan problems