Are you struggling with late payments? What should you do when you’ve missed one of your loan payments?
For some, it might mean being one step closer to financial failure and the possibility of losing something that was achieved through many years of hard work and dedication. For others, it might be a regular occurrence which is usually characterised by loss of appetite, sleepless nights and cold sweats which are all characteristic of stress.
When you miss one payment, it’s hard to make up. When you miss two payments, it’s even harder and your chances of making those two payments on top of the one that’s coming are very slim. And then the phone calls and letters come from whomever you owe, which makes you more than nervous and anxious. Late payments result in an unpleasant chain of events that can make you very uncomfortable.
Most financial institutions usually stress the importance of paying all of your bills on time. And in the beginning, when things are good, everything works like clockwork. But at some point something can go wrong. Divorce, unemployment, illness and the death of a spouse are some of things that could severely change your financial position in a big way.
Make a call for help when you’ve missed the first payment. Do not wait until you have missed five payments and you’re in a position that is practically irreversible. Take a look at your agreement, and see if there are any provisions for missed payments. Make a phone call, send a letter or email or even pay your lending agent a visit. Make sure that you make contact with them so that you can explain your situation.
Ask if you can have that payment added on to the end of your mortgage. Talk to your lending agency to see what options are available. They might suggest refinancing, a reduction of the interest rate, debt consolidation or restructuring your payments.
To be honest, some institutions are lenient and others simply do not care. In the beginning they all appear to be very nice and friendly, but when you run into difficulty, the true colours come to light.