Experts explain all the options available to borrowers struggling to make a loan repayment
Bills, debts, and loan repayments can sometimes come at inconvenient times, which can make it difficult for borrowers to make their payments. Snap lockdowns and ongoing Covid-19 restrictions may have added to this stress even further for some borrowers.
Missing repayments results in defaulting on a loan, which has a negative impact on a credit score – if a borrower defaults on their loan more than once, it could result in repossession or legal action. Whether a car loan or equipment finance, experts in the industry weigh in with their best advice.
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Industry experts reassure customers that lenders are sympathetic when borrowers’ financial circumstances change. Typically, they want to help clients who are experiencing financial difficulty. Contacting the lender and notifying them of the situation needs to be the first priority. Lenders will not only offer financial advice, but they will also have a dedicated team that can offer clients assistance in times of hardship.
Positive Lending Solutions reminds borrowers that refinancing is always an option for individuals struggling to pay off their current loan. This involves borrowers finding a new loan that better suits their needs. Begin by enquiring with new lenders about what they can offer. Lenders are sometimes willing to match another bank or lending group’s rates or terms – oftentimes lenders simply want to keep their customers, even if it means making adjustments.
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Selling or trading in the car or selling the house may be a valid option for some borrowers. Positive Lending Solutions cautions borrowers considering this option to ensure they take into account any fees their lender may require them to pay and that they have considered all other viable options. This option would allow borrowers to recover financially and stabilise their budget before potentially looking into a new loan or an alternative option.
Whatever the circumstances, there is a range of options to assist borrowers in times of hardship. To learn more about refinancing or hardship assistance, or to find the lowest interest rates or the best car loan Australia-wide, contact Positive Lending Solutions today.
