Personal loan repayments and financial hardship
23 July 2020
Financial hardship can affect anyone. When life gets tough – perhaps due to factors like family breakdown, ill health or job loss – meeting your personal loan repayments can be a challenge.
However, defaulting on a personal loan can lead to costly fees or even decrease your credit score, making an already difficult situation worse.
If you’re experiencing financial difficulty, there are ways that could help keep your loan in check.
Talk to your lender
The first thing you should do is let your lender know about your situation. Most lenders or creditors have support measures they can extend to customers who are struggling to meet their repayment obligations.
The sooner you reach out to your lender, the sooner they can try to help.
If you’re a Suncorp Bank customer experiencing financial difficulty, we may be able to support you. Call us today on 1800 225 223 from 8:30am-5:00pm AEST Monday to Friday, or email us on firstname.lastname@example.org. Depending on your situation, there are several ways we may be able to help you, such as temporarily postponing loan repayments or extending the term of your loan to reduce the amount of your loan repayments.
Just be aware these arrangements may require you to pay more interest over the loan term.
What happens if you can’t pay your personal loan
If you’re unable to make your loan repayments in full and on time, you may default on your loan contract. It’s important to be aware of your loan’s terms, including your repayment due dates. You’ll be able to find this information on your loan contract or by asking your lender.
If you’ve missed a payment or you’re concerned about defaulting on your loan because of financial hardship, get in touch with your lender as soon as you can.
Seek financial counselling
Experiencing financial hardship is stressful. If you’re feeling overwhelmed, you might find it useful to call in the cavalry – AKA a financial counsellor. Though there’s no one-size-fits-all solution to money worries, the right support and advice could help you to manage your debts and start to get your finances back under control.
A financial counsellor may be able to work with you to assess your current financial situation. Depending on your needs, they might help you create a budget; give you advice about how to negotiate with your lender, or negotiate directly on your behalf in some circumstances; explain what options, rights and responsibilities you may have or refer you to other support services.
Look after yourself
When things are tough, it’s important to reach out to those around you. Family members, friends and community organisations can help provide extra emotional support during times of financial stress.
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Personal Loans are provided by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request. Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Information Document before making any decisions about whether to acquire a product. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.