What To Do If You CanÆt Pay Back Your Loan

Although it can be hard to face, not being able to pay off your loan debt is something that many people have to come to terms with. If you are in this situation, then it is important that you try and sort it out as soon as possible. The longer you leave the problem, the worse it will get. If you cannot pay back your loan and need help, then here are some tips to help you on the road to recovery.

Admit defeat

If you really are struggling and cannot make your repayments, it will only harm you to carry on struggling. You will have to pay late fees or extra payments, and your debts will get worse. Do not try and cover your loan debts with other types of debt like credit cards, as you are just making the problem worse. Admit that you are struggling and start taking steps to change the situation right away.

Contact your lender

The first thing to do if you are having problems is to contact your lender and try to work out some sort of plan. Although lenders are a business, they are often sympathetic to your situation and might be able to help by deferring or temporarily stopping payments. Having your payments stopped for a few months might be all that you need to get back on track. If you can show your lender that you can solve the problems, they should be able to help you.

Pay what you can

Even if you cannot pay the full amount back each month, you should always try and pay what you can back. The debt you have is not going to go away, so paying back what you can will still help to reduce the problem, even if it is not the full amount you should be paying back. Lenders will look more favourably on you if you are seen trying to pay back as much as you can.

Seek advice

If your problems persist, then seek some independent financial advice to try and help you through the problem. There is free advice available, and it could help you to learn where you are making mistakes that you could change in order to pay back more of your loan amount.

If the worst happens

If the worst happens are you are forced to sell your home or are taken to court, try and deal with the situation properly. Although this is obviously a very hard time for you, make sure you keep a level head, and respond to all paperwork and requests promptly and accurately. Although the situation may seem bad now, if it helps you to become free of debt it will be worth it in the long-term. If you cannot pay back your loan, then seek advice and help, and always pay as much as you can do each month.

Peter Kenny is a writer for thriftyscot.co.uk Please visit us at Loans and Poor Credit Loans Visit http://www.thriftyscot.co.uk

[tags]Personal loans,uk,secured,loans,debt,consolidation,compare,apr[/tags]

Guaranteed Personal Loan

Guaranteed personal loans are a wonderful option and can be utilized for a variety of reasons. With a wide range of lenders competing today, a borrower has a wider choice of options available. Here is an overview about the type of loans, their uses, benefits, drawbacks and finer points.

Uses of guaranteed personal loans

Guaranteed personal loans can be used for a variety of reasons. This can include home improvements, purchasing furniture, dream holidays, to pay off high interest rate loans and credit cards, debt consolidation, medical expenses, starting up business or pretty much any other reasons you can imagine as long as it's legal! These can also be used to fill the gaps between paydays with necessary funds. These can be obtained from banks, specialist loan companies, credit card companies and other financial institutions. These are easier to obtain if you have collateral to secure them against.

Requirements to qualify for a guaranteed personal loan

While it is easy to qualify for and obtain a guaranteed personal loan, lenders make the process tougher by often asking for unnecessary documentation. However the important documentation that is often required includes credit reports, proof of identity, proof of residence, salary statements, bank statements, your attest salary slip and proof of your duration of employment. Employment information is sought because a guaranteed personal loan requires the borrower to have a certain income level per month. These loans also require a good credit rating for the borrower to gain approval.

The market

Today's market for loans and the loans industry has evolved to a large extent. Over a decade ago it would not have been as easy to obtain a guaranteed personal loan. However, today the market has changed with increasing numbers of players and options. With the Internet entering the scene, applying for such loans and processing them has become much faster. Different providers continue to offer lucrative options to tantalize and encourage customers to place their business with them.

While this creates a happy scenario for prospective borrowers, it may be wise to remember that the cheapest loan is not always the best. Consider the loan provider and their reputation in the market before deciding to apply for the loan. Read the small print carefully and look out for the interest rate, pre payment penalties and delayed payment penalties if any. Moneyeverything.com offers comprehensive loan comparison service with options for those who are on the lookout for a good loan. Visit www.moneyeverything.com and check out loan details with advice and answers to your questions.

I write articles on Loans. For more details please visit http://www.moneyeverything.com

[tags]Guaranteed personal loans, personal loans, loans[/tags]