What to do if you cannot pay your loan

List the payment date, amount due, available funds and essential expenses. Read the contract sections on delay, collection and contact channels. Keep messages and payment records together so you can describe the issue accurately.

Do not ignore communications, but verify that a person contacting you represents the creditor or authorized party before sharing information or making a transfer.

Explain when the difficulty began, what you can realistically pay and what written alternatives are available. Ask how any change affects the term, total cost, interest and status of the obligation. A lower immediate installment can still increase total payment.

• Request confirmation of any arrangement in writing.
• Do not agree to an amount your budget cannot sustain.
• Keep proof of payments and communications.
• Use the correct complaint channel if information is unclear.

A new high-cost obligation can postpone rather than solve the problem. Compare the full effect before refinancing or borrowing elsewhere, and avoid any service promising guaranteed rescue in exchange for an advance fee.

If collection involves threats, impersonation or demands through an unverified account, preserve evidence and seek the appropriate official assistance for the conduct involved.