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Falling behind on a personal loan: your options

Practical steps to take the moment you know you'll miss a loan payment.

Personal Loans3 min readReviewed July 2026

Contact the lender before the payment is missed if you can. Under UK guidance they should consider reduced payments, a payment holiday or a longer term where affordable.

Don't be tempted to cover the loan with another credit card or a new loan — this almost always makes the total debt worse. A written income and expenditure form gives the lender a realistic starting point.

If several debts are affected, a single conversation with a debt help team member is usually more productive than negotiating one lender at a time.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.