Avoiding default

Starbuddy

If I write to my loan provider and point out that I am having difficulty making my monthly payments and would like to either

1) Extend the loan period
or
2) Take three months payment holiday to get back on track

Will these mean a default on my credit report?

(I have missed making the last two month payments)

file_wizzard

Starbuddy wrote:

If I write to my loan provider and point out that I am having difficulty making my monthly payments and would like to either

1) Extend the loan period
or
2) Take three months payment holiday to get back on track

Will these mean a default on my credit report?

(I have missed making the last two month payments)

is entirely up to the lender, they may wish to help you ( most will try if it is a short term problem)

it is unlikely they will default the account straight away, but they probably have / will register the late payments

Mark7799

The fact that you have missed the last two payments may mean the default is already there.

I would get in contact with them asap and ask if you can reduce (not suspend)payments and maybe pay token amounts for 3 months.

Are there any other commitments you are behind on?

Starbuddy

Thanks for the replies - sorry I didn't make myself clear, there is no default on my account at present (I assume not, as surely they would have informed me of this!)- I have just missed making two payments over the last five months.

I don't have any other outstanding debts, I was just concerned that asking to pay a lower amount for three months would mean a breaking of the org credit agreement - hence a default appearing on my credit record.