{"id":13608,"date":"2020-10-29T11:50:20","date_gmt":"2020-10-29T16:50:20","guid":{"rendered":"https:\/\/www.netcredit.com\/blog\/?p=13608"},"modified":"2025-10-22T12:12:25","modified_gmt":"2025-10-22T17:12:25","slug":"what-can-i-do-cant-pay-loan","status":"publish","type":"post","link":"https:\/\/www.netcredit.com\/blog\/what-can-i-do-cant-pay-loan\/","title":{"rendered":"What Can I Do if I Can’t Pay My Loan?"},"content":{"rendered":"

Many of us have been there before \u2014 unplanned bills, emergency expenses or the loss of a job<\/a> \u2014 it\u2019s not always possible to make ends meet. However, avoiding a financial issue now can make matters worse down the line.<\/p>\n

You might feel like you\u2019re out of options if you\u2019re short on money or can\u2019t pay bills, but we\u2019re here to help. Read on to learn what happens if you can\u2019t repay a loan, and what you can do in order to manage and afford payments.<\/p>\n

\u00a0<\/strong><\/p>\n

What Happens if I Don\u2019t Pay My Loan?<\/strong><\/h2>\n

When you take out a personal loan<\/a> or use a credit card, you agree to repay the borrowed amount, plus any applicable fees or interest for the account. Late or missing loan payments can lead to additional fees and penalties, in addition to a higher interest rate. Typically, late payments are 30 to 60 days past a bill\u2019s due date, but lenders will vary. Delinquent accounts may be sent to a collection agency, though it depends on the specific creditor and\/or situation.<\/p>\n

Beyond the extra money and fees, late or delinquent loan payments can take a serious toll on your credit health, as these negative marks are recorded on your credit history.<\/p>\n

\u00a0<\/strong><\/p>\n

Why Should I Care About My Credit Score?<\/strong><\/h2>\n

Credit scores measure a person\u2019s creditworthiness, or their recorded borrowing history. Good credit can help<\/a> save money on interest and fees, while poor credit can make it harder to secure affordable financing later down the line. Although it\u2019s a financial measurement, credit scores can affect our lives in other ways, like when we apply for a job or lease an apartment.<\/p>\n

 <\/p>\n

What Are My Options if I Can\u2019t Pay My Loan?<\/strong><\/h2>\n

\u00a0<\/strong><\/p>\n

Option 1: Contact Your Creditor<\/strong><\/h3>\n

Although you may want to steer clear of any creditors, it\u2019s a good idea to be proactive and honest about payment issues as they arise. Many companies offer some type of payment deferment and\/or financial relief programs designed to help people in need manage bills and protect their credit. You can find the customer service line on your most recent billing statement, or search for the information online. Keep in mind that you\u2019ll still need to comply with any new payment agreement in order to keep your account (and credit score) in good standing.<\/p>\n

 <\/p>\n

Option 2: Prioritize Expenses<\/strong><\/h3>\n

Temporarily prioritizing the essential expenses is another option to help manage loan payments and get your finances back on track. Typically, \u201cneeds\u201d include costs that are required to live and work \u2014 think food, housing, utilities and transportation. Pay for the essentials, and as much as you can towards the loan and other bills. Avoid spending money on non-essential purchases<\/a> if you\u2019re behind on any financial responsibilities. Remember that you may incur fees, interest or other charges for late, partial or missed payments, so aim to pay all bills on time and in full.<\/p>\n

\u00a0<\/strong><\/p>\n

Option 3: Lower Monthly Spending<\/strong><\/h3>\n

You may have room to lower spending in other areas if you can\u2019t afford to pay your loan. Review all categories and look for ways to cut expenses, particularly on non-essential \u201cwants\u201d, or create a budget<\/a> if you don\u2019t already have one. These tips can help stretch your money further:<\/p>\n