It might have options to help you, whether it’s changing your due date or letting you skip payments for several months. You might even be able to negotiate a settlement.

Explain that you can’t make the payments, offer less than you owe, and see if it accepts. This isn’t likely to succeed unless you can convince your lender that you’re unable to pay, but it’s an option. Your credit will suffer if you settle, but at least you put the payments behind you.

Prioritize Your Payments

You might need to make difficult decisions about which loans to stop paying and which ones to keep current on. Conventional wisdom says to keep making payments on your home and auto loans, and to stop paying unsecured loans like personal loans and credit cards if you must. The rationale is that you really don’t want to get evicted or have your vehicle repossessed.

Damage to your credit is also problematic, but it doesn’t instantly disrupt your life in the same way. Make a list of your payments, and make a conscious choice about each one. Make your safety and health your priorities.

Federal Student Loans

You might have extra options available if you borrowed for higher education through government loan programs. Loans that are backed by the federal government have benefits that you can’t find elsewhere.

Deferment

You can stop making payments temporarily if you qualify for a deferment, giving you time to get back on your feet. This is an option during periods of unemployment or other financial hardship for some borrowers.

Income-Based Repayment

You might be able to at least lower your monthly payments if you don’t qualify for a deferment. Income-driven repayment programs are designed to keep payments affordable. You’ll end up with an extremely low payment to ease the burden if your income is extremely low. Diesen Beitrag weiterlesen »