22 Jul The 10 Worst Reasons for Missing Your Loan Payment
If you’ve taken out a loan at any point in your life (or are about to) there may come a point during the course of repaying the loan when one or more of the reasons listed below will enter your mind with a view to skipping that month’s loan repayment. We’ve gathered together what we think are the 10 worst reasons for missing your loan payment.
If your loan is of the payday variety and only a few months duration you could be lucky and find none of your personal circumstances change in any way during the course of the loan. Take out a longer term loan up to 5 years and see what life throws at you to put you off your stroke and tempt you into entertaining one of the reasons below to not pay your loan for a month. Don’t do it!
Whatever mental manipulation your mind metes out, always stop and think again. If necessary put off till the next day to mull things over but never just don’t pay. Always speak to your lender who you will find is way more sympathetic than you thought they’d be.
No one wants to take someone else to court or put the debt collectors on them if they don’t have to. Basic human decency aside, it simply costs more money to have someone chase you or take you to court rather than come to an amicable arrangement or a re-negotiation of the terms.
No matter how short the repayment period or how low the interest rate, missing your loan payment will have serious consequences. If you’re struggling to keep up with your payments, avoid these 10 worst reasons why people miss their loan payments.
The Troublesome Ten
1) It’s Not That Serious
A lot of people think that missing a loan payment isn’t that big of a deal. But the truth is, it can have serious consequences. For example, if you miss a personal loan payment, you could lose your eligibility to get financial help in the future. If you miss your mortgage payment, it may result in repossession or even bankruptcy (not immediately but further down the line)!
2) I Don’t Have Time to Go to the Bank
Even if you don’t have time to go to the bank, you can usually make your loan payment online or by phone. If this is not an option, call the customer service number. It will be on your monthly statement and ask them how to proceed. If it’s been a while since you’ve been in touch with the company, they may even be willing to help you out!
3) Nobody Will Notice
If you think nobody will notice that you missed a loan payment, think again. Not only will your lender notice, but they’ll also report it to the credit bureaus. You can find yourself in worse financial shape than if you had never borrowed money in the first place!
4) I Need My Money
One of the worst reasons you can have for missing a loan payment is simply because you need the money for something else. If you are struggling to make ends meet, don’t be tempted to take out a high-interest payday loan. Or, for that matter, use your credit card to buy more things that will put you in debt.
5) It Was an Accident
If you accidentally miss a loan payment, don’t panic. Accidents happen. The key is to take action immediately to minimise the damage. You’ll want to contact your lender as soon as possible and explain what happened. You may be able to work out an arrangement or even get your missed payment waived if it was an accident.
6) I Can Make Up the Difference
You might think that you can make up the difference if you miss a loan payment. This is actually one of the worst things that you can do. In many cases, your credit score will take a hit and it will become more difficult to get approved for future loans.
7) It Won’t Happen Again
You might think that missing a loan payment is no big deal, but it can actually have pretty serious consequences. Not only will you be charged late fees, but your credit score will take a hit. This can make it harder to get loans in the future. If you need help paying off your debt, check out our blog on what you should do if you’re struggling with debt.
8) Everyone Does It
No, not everyone misses a loan payment. In fact, most people who have loans make their payments on time. So, if you’re thinking about skipping a payment, know that you’re in the minority. To help you avoid missing your next one, we’ve compiled a list of the ten worst reasons to miss your loan payment.
9) I Want a Break From Repaying
It can be tempting to want to take a break from repaying your loan, especially if you’re struggling financially. But missing a payment can have serious consequences, including damaging your credit score and incurring late fees.
10) No One Told Me
You’re not a mind reader, but you are responsible for making your loan payments on time. If you’re unsure when they’re due or how much you need to pay, it’s your job to find out. There is no excuse for failing to make payments that have been clearly communicated and agreed upon in advance.