Missing One Repayment

If you are unable to make your loan repayment one month, it is important that you contact your lender immediately. If it is a short-term problem (for example, your monthly salary payment has been delayed) and you know that you will be able to make the payment within a number of days or weeks, let them know this straightaway; if it is a one-off occurrence your lender is unlikely to have a problem. If you do not know when you will be able to resume repayments, consider asking your lender for a repayment holiday, where the outstanding amount is added onto the end of your loan schedule. This will however affect the interest you pay and ultimately make your loan more expensive.

If it is a secured loan payment you are having trouble with, try and meet the payments even if it means negotiating smaller repayments on any of your unsecured loans. Keeping up regular payments, even if the amount you can pay is small, shows lenders you are willing to stick to your loan commitments.

If you are unable to make a repayment, consider rearranging your budget to enable you to save more each month. This would allow you to build up a reserve in case you are unexpectedly short of funds another month, and leave you less vulnerable to repercussions from missed repayments.