What is the first thing you should do and is key to working with a lender if you are behind in a loan payment?

What will be an ideal response?


When behind on a loan payment, the key to working with lenders is to communicate as soon as you know something is wrong and let them know you will not make a payment on time or at all. Start by contacting your credit card companies and asking for a reduced interest rate. There is nothing lost by asking. Contact your other lenders. Let them know your situation (job loss, mortgage payment adjusted upwards, etc.) and ask how they can work with you. Suggest a lower interest rate, a temporary reduced minimum payment, forgiveness of part of the loan, or a temporary deferment. Ask if there are any negative consequences on your credit report as a result of working with them. Always request something in writing or send a certified letter that outlines your agreement. When dealing with lenders and collection agencies, any agreement that is not in writing may as well not exist.

Business

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What will be an ideal response?

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