While the current economic situation in the United Kingdom has improved ever so slightly, it is a fact that in the worst days of the recession of 2008, several ordinary people as well as small businesses had to default on the repayment of their loans to their banks. Indeed, last few years have been terrible for the banking system as banks have been hit by a slew of loan defaults, especially with personal loans. We realize how heartbreaking and humiliating it is for you to have missed out on your loan repayment to your bank. But we wish to assure you that you are not the only person to go through this serious setback, as there are any number of people who have gone through this trial by fire and come out well at the end, having completely resurrected their financial situation. We explain the options available to you, so that you may make the best of a bad situation. However, if you are looking for a shortcut to your problems or a magical solution, we can only warn you about the utter improbability of such a thing saving you.
What You Should Definitely Not Do
First, we start off with things that you should absolutely avoid doing. Do not try to get another loan to cover the one that you have defaulted on. Please don’t make the mistake of borrowing on your credit card to make your loan payments. Do not fall into even greater debt, to cover your old debt.This merely postpones what is already a terrible situation and exacerbates the problem.
What To Do If You Have Missed Out On A Single Repayment ?
If you have prior knowledge that you shall be defaulting on your loan repayment, you must call the executives at your bank at the earliest and inform them about the same. If you have borrowed from the NatWest bank for instance, you will do well to use the NatWest contact phone number that is available to you, and contact the bank officials at the earliest. Usually, bank officials appreciate being told beforehand by their customers about missing out on a repayment. What they don’t take to kindly – is a complete surprise and lack of communication from the customer. It is possible that, if you convince them of your sincerity to pay back the loan at some point in the near future, the bank officials may decide to reschedule your repayment and fix a more convenient date for you. The bank may also offer you a ‘payment holiday’ – which frees you from making any payment for a certain period. After the conclusion of this period, payments are to be made as usual.
What To Do If You Have Missed Out On Several Repayments ?
This is a more serious problem and bankers do not take kindly to it. While it is possible that some bankers may well be more considerate and reschedule your payment schedule, most are not so obliging. It is possible that the bank might threaten you with court action, unless you repay the whole outstanding balance in its entirety. This is a true financial emergency for you, and the best option for you is to take the help of close relatives and friends to help resolve the crisis, or to sell some property. As we said earlier, there are no magical solutions on offer, and you should not expect any.
Defaulting on a loan is the worst thing that can happen to an individual’s financial future. We offer a few suggestions on how to deal with this crisis, but as we insisted several times earlier, there is no magic bullet that can help salvage the situation.
Jake is a business owner with a personal experience of defaulting on a loan. It took him several consultations with the NatWest staff, who he reached out towards using the NatWest contact phone number, and a lot of hard work later, to help resolve a really tricky situation.