What to Do If You Fall Behind on a Loan Payment

2 Min. Read

When you’ve navigated the sometimes complex lending process and arrived at “yes” in response to your loan application, you’re faced with a big responsibility: keeping up with your monthly loan payments.

From unexpected medical bills to unplanned car repairs, a lot of things can cause you to miss a loan payment. It’s not the end of the world, but it is important to get back on track. A caring lender may also believe in compassionate collections, and they can help you get in front of a series of late payments.

If you fall behind on a loan payment, take these steps:

Call Your Lender as Soon as Possible

If you know you’re going to fall behind with a payment, let your lender know. Reaching out proactively demonstrates your responsibility, and acting early increases the chances of your lender being able to work with you to create a plan.

Ask to Change Your Payment Due Date

If the timing of your due date is an issue, you may be able to change the date your payment is due. Work with your lender to adjust your payment schedule so that your payment comes due after payday or at a different time of the month from when you incur other expenses.

Create a Payment Plan

Your lender may be able to offer you the option of extending, postponing, or post-dating payments. Sometimes, making smaller but more frequent payments can help you get caught up and back on track. But be careful not to lose sight of the big picture—these solutions can lower your payments in the near term, but extend the length of your loan and increase the total amount you must repay.

Make a Plan for Future Payments

The best way to avoid the consequences of a missed payment is to make a plan that prevents it from happening. Here are a few of the steps you can take to be proactive:

• Sign up for payment reminder notifications via text or email. You can also set your own calendar notification before a payment is due.
• Sign up for automatic payments and have the funds automatically withdrawn from your checking or savings account on the due date (or a date you choose before the due date).
• Take control of your budget with financial planning tools (Marine Credit Union has a variety of free calculators and budgeting tools to choose from).

Marine Credit Union: Helping You Build Positive Financial Habits

At Marine Credit Union, we believe everyone deserves a second chance. If you fall behind on a loan payment, we can work with you to find a solution that prevents a temporary setback from becoming a long-term challenge.

We take the time to understand your situation and work with you to regain stability and boost your confidence. Building positive financial habits is easier when you have the right support.

Experience a different approach with Marine Credit Union. Learn more about applying for a loan or reach out to our team for help.