What if I can not repay my loan anymore?
You have taken out a loan. With a fixed income you can pay part of this loan every month. With this approach, you have also taken out the loan. A repayment plan has been drawn up with the help of your fixed income, so that you know exactly how much you have to repay each month. It can happen that you are short of cash and can not pay this monthly payment. But what if you suddenly get fired? What if you come into the sickness law? Then you can no longer meet your monthly payment obligation.
With a fixed income it is very easy to take out a loan. Yet it can happen that this fixed income suddenly disappears. This of course has a big influence on the repayment of the loan. You can not pay the monthly repayments anymore. What can you do then? Good preparation is always half the work. Of course you can never say for sure how long you have a fixed income. That is why it is wise to have good budget management during the loan. Keep an eye on how much you spend each month and provide a buffer. This way you always have a back-up in times of need.
A bit too late
It is not a bad thing to be late with the monthly repayment. If you still make the payment within the short term, there is no problem. It only becomes a problem when you can not pay. In this case, the creditor can call in a bailiff or collection agency. It is wise to let you know in time that you can no longer pay the loan. Banks and lenders are often willing to see if new arrangements can be made if you clearly outline your situation. You can often make a payment arrangement with the lender, whereby a new repayment term is agreed. For example, you may be able to pay a lower amount every month, spread over a longer period.
It is wise to take a look at your financial situation. There are always expenses that you can limit. By cutting back, you may be able to repay your loan normally. If you run multiple loans, that may be less easy. Then it makes sense to see if you can borrow cheaper from another lender. It may be useful to take out a loan to repay the open amount of your other loan, especially if this lender offers lower interest rates.