Most people when they get instant installment loans intend to repay. They make the purchase with the commitment to pay for the item or service received. Unfortunately, a major event or crisis occurs which causes the borrower to become unable to pay. One such event is unemployment. This is the number one reason why most people can no longer afford to pay the loan. If this should happen to you are there any options available?
When you realize that you are unable to make your payments. You should contact the customer service department where you got the loan immediately. They are more likely to work with you when you bring this to their attention. Because you are probably still shown as a current and on time customer they see that you are honest and willing to repay. Many times they may lower the interest rate or lower the payment amount temporarily. They may assign you a customer service representative to your loan that you will speak with on the status of your installment loan.
Another option is to refinance it with a spouse, family member or friend. This may not be as easy as it seems as your spouse may not be able to make the payments either if both incomes were needed to meet the family budget. Sometimes friends or family members don’t have the funds or won’t loan you the money. It never hurts to ask if you are in a bind.
You can contact a credit counseling service. They are sometimes able to consolidate this loan with any other debts you might have into one loan. In many cases this amount is less than all of the total payments together. This frees up your income and allows you to conserve any savings that you might have until you get another job.
You can get a part time job or get more than one part time job. Although this may not be equal to your income prior to unemployment, it will allow you to still pay your bills. You can do this temporarily until you get a fulltime job. You might find that the part time job might lead to a new full time job.
You can decide to do nothing. This is the worst decision to make. The Instant loans that you have will not disappear and neither will the people who demand payment. They will call your house constantly and ruin your credit. You will not be able to avoid the calls forever. This will increase your stress and impair your health. Most illnesses are caused by stress.
Installment loans are debts that are made by companies that expect to be repaid. Should you become unemployed you can refinance, contact the company to make a deal, use the services of a consumer credit counseling service, get a part time job, or file for bankruptcy. Don’t allow your credit to be ruined. Try all avenues before defaulting on the loan.