When you get personal loan, you borrow fixed amount from the bank or your creditor, you agree a time period with bank/creditor and repay them. You know how much you have to pay each month and how long period of time.
The creditor/bank charges you interest which depends on how much you borrowed, what is your credit history and the period to pay back the loan. Personal loans are of two types.
Secured Loan: This loan is a high risk to your home and property, if you fail to do payments, they may repossessed your home.
Unsecured Loan: Most personal loans are unsecured, which means it’s not secured against your property.
What to do if struggling to pay back loan?
If you are struggling to pay back you loan or arrears then the first thing you should speak with your lender to see if they help you in any way. It depends on your lender and your agreement with your lender, they may offer you payment break.
If you don’t pay your loan arears you will be sent a default notice. This is like a chance to get back to your payment. If you still miss payments, approximately 2-3 missed payments and your loan will be defaulted.
After the account get defaulted they might take these actions to get you pay them back.
They can pass the debt to debt collection company.
Court action such as CCJ (County Court Judgement).
Add additional charges and interest to your total loan.
Letters and calls as a remainder.
The situation can get worse if you don’t take any action. You may feel stressed and under pressure as you can’t afford to pay back and worried what kind of action creditor will take.
We can help you to deal with this situation. We at ACME CREDIT CONSULTANT LIMITED can give you free advice and consultation to get rid of your financial problems. You can discuss your situation with our financial advisor who got experience of around 15 years in this field