What Happens If You Miss a Loan Payment? 

This is probably the biggest mistake people make. When money gets tight, it's tempting to avoid the problem. It's easy to stop answering calls,  avoid opening emails, and tell yourself you'll deal with it next week.

Unfortunately, loan payments don't magically disappear because we pretend they aren't there. (If only bills worked like the laundry pile…we all know if you ignore that long enough, eventually you just buy more socks.)

The best thing to do is to contact your lender. The sooner you reach out to them, the more options you will usually have. Open communication is the key, and good lenders are there to work with you, not against you. 

If you're only a few days late

• A phone call
• An email
• A text reminder

If you're later than that

The important takeaway?

Sometimes, missing a payment is unavoidable, and while it isn't ideal, it is not the end of the world. The best thing you can do is make your payment as soon as possible and not allow it to turn into several missed payments, because that is where the bigger problems begin.

This is an important question. Not every late payment immediately lands on your credit report, but if an account becomes seriously delinquent, it can affect your credit score.

That's one reason communication matters so much.

If you're having trouble making your payment, talk to your lender before the situation snowballs. Lenders can offer options and information you may not have considered yourself.  In the future, you will appreciate the communication! (Kind of like flossing. Nobody wants to do it today, but tomorrow's version of you is thankful.)

Realizing that a missed payment is inevitable is the hard part. Here are a few steps to help you navigate missing a payment. 

Step 1

Step 2

Step 3

Step 4

Stick to the new plan. Work diligently to keep up with your new plan in place with help from your lender.

Remember: Communication with lenders beats silence every time.

No! One missed payment doesn't define your financial future, just like one cheat meal doesn't erase a habit of healthy eating. One late payment doesn't erase every good financial decision you've made.

Remember, what matters most is what you do next.

Here are a few ideas to help you stay ahead of the financial pitfalls that are ready to trap people.

• Set calendar reminders for due dates
• Enable autopay if it works for your budget
• Pay a few days early when possible
• Keep your lender updated if your contact information changes
• Reach out before you're behind, not after

Nobody enjoys missing a payment, and living paycheck-to-paycheck (sometimes even penny-to-penny) is hard. Financial setbacks happen to good people every single day. The important thing isn't being perfect.

Taking action and being open with your lender can prevent greater problems.

If possible, use a local lender you trust, and if you're worried about a missed loan payment or think you might have trouble making your next one, talk with them as soon as possible.

At Las Vegas Finance, we believe honest conversations solve more problems than silent worry ever will. If you're concerned about a missed payment or want to discuss your options, give Las Vegas Finance a call.

Our team is here to answer your questions and help you find a solution that works for your situation.

Call (702) 889-9888 or apply online today.