Financial difficulty
What happens when you default on a loan
The full timeline from missed payment to default notice, CCJ, and enforcement — and how to stop the process at each stage.
7 min read → Financial difficulty
What to do if you
can’t repay a loan
A calm, practical guide to your rights, your options, and the free help that’s available.
7 min read • Cash Train editorial team
First: take a breath
Missing a payment is stressful — but it is fixable. The worst outcomes (CCJs, enforcement) happen when people ignore the problem. The moment you know you might miss a payment, that is the moment to act. Every option in this guide becomes harder the longer you wait.
Step 1 — Contact your lender immediately
This is the single most important action. Call or email your lender before the payment date if you know you're going to miss it. Most regulated lenders — including Cash Train — are required to treat customers in financial difficulty fairly, and have dedicated hardship support teams.
When you contact them, have this ready:
- Your account reference or loan number
- A clear explanation of why you can't pay (job loss, unexpected bill, illness)
- What you can realistically afford instead
- How long you expect the difficulty to last
Cash Train support: [email protected]
Your rights — what lenders must do
FCA rules require regulated consumer credit lenders to do all of the following. Cash Train is an unregulated lender, but we voluntarily apply the same standards — if you are in difficulty, contact us and we will respond in kind:
Deal with you fairly and sympathetically if you’re in genuine hardship
Give you reasonable time to explore your options before taking enforcement action
Suspend charges if you’re engaging with a recognised debt advice service
Not contact you at unreasonable hours or in a way that causes you distress
Direct you to free debt advice services
Options available to you
Payment holiday
If your difficulty is short-term (you're waiting for a salary, or had one big unexpected cost), many lenders can defer a payment for 1–3 months. Interest may still accrue, but you avoid a default marker.
Reduced payments
If your income has fallen, ask to reduce monthly payments for a set period. A formal repayment plan agreed with your lender is much better for your credit file than missed payments.
Early settlement
If you can access money from another source (savings, family), pay off the loan in full. You'll get a rebate on future interest.
Debt management plan
Via StepChange or another charity, a DMP consolidates your debts into one affordable monthly payment. The charity negotiates directly with lenders.
Free debt advice — use it
These organisations are free, independent, confidential, and non-judgmental. A trained advisor can review your whole financial situation and negotiate directly with creditors on your behalf.
What happens if you don't act
This is not to alarm you — it's so you can make informed decisions about timing:
Day 1–14
Missed payment
A missed payment fee may be charged. Your lender will attempt to contact you. Your credit file may be marked.
Day 15–30
Default notice
If you still haven’t paid, the lender issues a formal default notice. This gives you 14 days to bring the account up to date before a default is registered.
Day 30+
Default registered
A default marker stays on your credit file for 6 years. It significantly affects your ability to borrow, rent, or get certain jobs.
Variable
Debt sold or CCJ
Persistent non-payment can result in the debt being sold to a collection agency or the lender obtaining a County Court Judgement (CCJ).
Every step above can be paused or reversed by contacting your lender and engaging with debt advice. The earlier you act, the more options you have.
Related guides
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Common questions
FAQ
Contact us immediately — before a payment is missed if at all possible. We will not charge fees for payment difficulty, and we can discuss options including a payment deferral, a reduced-payment plan, or a temporary repayment holiday. Acting early gives us and you the most flexibility.
No. Cash Train does not add penalty fees or default charges for payment difficulty. We will record the missed payment on your credit file as required, and interest will continue to accrue on the outstanding balance, but we will not pile on extra charges.
StepChange Debt Charity (stepchange.org or 0800 138 1111), Citizens Advice (citizensadvice.org.uk), National Debtline (0808 808 4000) and MoneyHelper (moneyhelper.org.uk) all provide free, independent, confidential debt advice. We actively encourage customers in difficulty to use these services.
If you are experiencing genuine financial hardship, contact us. We will consider your circumstances individually and work with you on a plan. Depending on your situation, this may include temporarily reducing or suspending interest accumulation. Our goal is always to find a sustainable outcome for you.
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