During this time of economic uncertainty, where you may have lost your job or your hours have been reduced due to Covid 19, are you worried about what to do with your loan and/or mortgage payments? Are you asking yourself “What do I do now?” or “Which payments do I make and which ones can I skip this month?”
The best thing to do is to contact all of your creditors before any payments are missed. Why? Because your creditor or banker has more options that can help you while you are up to date with your payments. This is known in the banking industry as still being “current”. It may sound odd that I am saying to talk to your banker before missing a payment and letting them know that you are considering not paying them, but it easier for the creditor/banker to help you before the payment is missed. You want to make it easy for them to help you and you can do that by talking to them early, before the payment is missed.
What happens if you don’t talk to your banker/creditor before you miss the payment? You will be told “make the payment and then we can talk”. Once the payment has been made, then you most likely will hear “I cannot do anything, as you just had a late payment, sorry there is nothing I can do”. This does not help either you or your banker, as they were unable to help you. Help them to help you by talking to them about your options before a payment is missed. This is where having a relationship with your banker helps, so that when you call them, they know who you are and not just as a client number.
You have four options depending upon the type of payment you are discussing and your relationship with the creditor/bank. They are 1) make the payment, 2) make an interest only payment, 3) delay the payment, and 4) skip a payment. Discuss with your banker/creditor what option is best for you given your individual situation.
Many people are calling right now. You want to stand out in your banker’s mind for a good reason, as there will be many others who will be remembered for the wrong reason during this time.
“Is that the best you can do?” Say those exact words in a confident calm manner, and it can do wonders. Say it once you have been given the best option by your banker. You may hear “Yes, it is.” Or you may get a better alternative, you never know until you ask.
Working with your creditor/banker now so that your situation is the best that it can be will be remembered when things are back to normal, whatever that may look like. Your creditor/banker will be able to and want to help you when you need them in the future because you will have made it easy to help you by taking action before your credit situation falls apart.