By having a personal loan can be very beneficial to you, but if you fall behind on your payments can cause a lot of damage towards your current financial status.
The most important thing to do is not to create more debt to settle other debts. That might be a quick solution to your problem but it can cause major problems for you in the future. It will cause you to just fall deeper and deeper into the pit of debt. Rather get ways to have more money, by working extra hours, getting a second job etc. so that you have more money to pay towards your personal loan.
Another important factor is to advice your lender as soon as possible about your problem and tell them your situation. Don’t be scared, be the responsible one and tell them. Don’t wait for them to contact you. The lender will then most likely give you a few options. For example they can extend the time period of your loan in order for you to pay smaller fees at the end of each month. At the end of the day this option will cost you more money but you will be able to afford the monthly payments.
If your late payments are due to you losing your job, then you should be honest about your situation. There is nothing to be shy about; it is a common situation for a lot of people in South Africa. The lenders will then most likely refinance you’re personal loan so that you will be able to afford the loan. You might pay longer and more on your loan but you can put your mind at ease, knowing that you will be able to afford the loan at the end of the day.
If you have a bad credit score, then it's highly unlikely that you will get a loan. Get your credit score first and see where you can improve.
It is extremely important to keep your loan payments up to date. It can get very unpleasant to have bad debt. It is very difficult to apply for more credit or debt if you are in bad debt and bad credit.
If you struggle to make the payments at the end of each month then you can also try to negotiate with the lenders. In many cases the lenders will allow you to pay a lump sum of money with discount to clear your loan with them.
To conclude we can see that it is of utmost importance to keep up to date with your personal loan payments and not to fall behind. I hope that this article has given you some advice on how to defeat the enemy of late payments.