Job Loss Cause for Delinquent Payments

An article on MSNBC reports that the rate of delinquent loan and credit card payments is up and they believe it’s due to the nation’s highest unemployment rate in 26 years.

Are you one of the these delinquent loan payment individuals? There are things you can do while unemployed to help you with your finances. You don’t have to let everything slip underneath you. Losing your job is bad enough but is temporary, losing your credit rating can stay with you for years.

One of the first things you should do about your loan payments is call the lender. Explain that you recently lost your job and that you are making strides in looking for another one. Since the economy is in such devastation, most lenders will understand and try to work with you. This may include lowering your payments or deferring your payments to either the end or beginning of the month when you have more cash.

If you don’t have a loan but credit card debt, you can also call the credit company to ask for a reprieve on your debt. If the card company is unwilling to help you, consider getting another credit card with a lower interest rate that you can use to pay other card. This is not the ideal situation but it’s better than skipping payments. Of course, you will still need to pay on the new card as much as you can each month.

(Photo Credit: http://www.flickr.com/photos/omaromar/53213877/)

July 8th, 2009 by Marcelina Hardy | Posted in Debt Management | (0)