There are many people who take loans to meet their important financial requirements and stabilize their unstable fiscal condition. But, they have problems in loan repayment when the time of loan repayment comes closer to them. If you are a person in debt and you can’t pay off the loan on the due that, you can take following steps to avoid late hefty penalties-(1) You ought to contact your financier and let him/her know about your late payment. You should mention the concrete cause of delay in loan settlement.
(2) Lots of lenders forgive late fines or additional charges if the borrower has lost his job. The lenders offer this facility to loan borrowers for a maximum period of 6 months. So, you should contact for the loss mitigation department of your finance and inquire if a mortgage payment deferral is workable or not.
(3) You should be prepared to prove your current hardship to the lender and your inability to pay off the loan on a temporary basis. It will be a wise option to make repayment using your equity as collateral.
(4) You should provide your credit lender with bank statements, income pays slip and documents that show you are unable to pay off the loan for the time being. You can also give a signed statement that you are working hard to improve your financial condition. This may result into payment deferral or a payment reduction plan.
(5) Keep communicating with your loan provider throughout the whole process whether the situation is bad or worse.
