The Adverse Mortgage Solutions guide to how to avoid a bad credit record when you can't keep up with the payments on a mortgage, loan or credit card.
1. Ring your lender today
If you are going to miss a payment, particularly on a mortgage, the lender will be reassured if you act promptly. If you have already missed a payment, you should respond to a phone call or letter from the lender quickly. Never pretend that you do not have a problem. Talk to your lender - they do not want to lose your business and will be sympathetic, particularly if you act quickly and positively.
2. Speak to a decision maker
Ask to speak to a supervisor. The more senior the better. They are usually better trained to respond to your problem.
3. Make a personal contact
Establish a relationship with the person you talk to. If your lender has a high street branch near you, make an appointment and go and see them. If you can't see them, work hard on the phone to be as positive as you can.
4. Quote your account number
Your account number will be on all of your old statements and correspondence from your lender. Explain concisely what the problem is and ask that a record is made of the conversation as well as keeping your own record.
5. Be positive
Tell your lender when they can expect to receive a missed payment(s), be realistic. Don't make promises that cannot be delivered. It is better to make sure that you can make the next payment and arrange to pay off the missing one(s) over an extended time.
6. Keep talking
Don't give up. If your suggestions are refused, come up with another plan. Your lender will much rather you make some payment. If you give up and make no attempt to pay or come up with a new plan, you run the risk of being taken to court. By acting today, you can avoid a bad credit record.