La Loma FCU
February  ·  909.796.0206
February 2019
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What to do if your credit union loan is delinquent?

Sometimes life happens and unexpected emergencies come up. Whether it be a family emergency, car repairs, illness, loss of job or a reduction in hours; chances are it could affect your finances. Events like this, whether temporary or long term, can cause us to fall behind with our creditors.  What do you do? Keeping the lines of communication open is essential. Your credit union may be able to assist you in finding a resolution that can maintain your financial relationship and keep your Loan and/or Account in good standing.  Avoiding contact with your credit union can make a bad situation worse, leading to added Collection efforts and/or legal fees, repossessions, foreclosures and derogatory reporting to the Credit Bureau. Here is some advice from La Loma Federal Credit Union to keep you moving forward.  

     1. Contact your credit union

The best advice can always be the simplest. If you are experiencing some financial difficulty and know that you’re going to be late on you repayment contact our special accounts department to let the credit union know. It’s always best to keep an open line of communication so that your credit union doesn’t think the worst when your loan goes delinquent. Be sure to always provide detailed and accurate contact information such as phone numbers, emails, addresses, and references.

Quick Tip: Be upfront. Let's work together.

     2.  Review your finances

The next step is to review your current financial situation. Are you facing a temporary hardship or a long term hardship? A best practice is to always be upfront with yourself and your credit union.  Once you are able to figure out your current financial situation, you can determine an appropriate course of action. Something to consider is are you spending more than what you are bringing in. Can you make changes to your lifestyle to help you afford your debt? Sometimes small monthly expenses can add up and this could lead to why an individual is struggling.

Quick Tip: Create a budget and be sure to include all monthly expenses. It’s good to know exactly what goes and what comes out.

     3.  Follow through

If you make payment arrangements or plans were made, follow through with them. If an extenuating circumstance causes a delay, contact your credit union to let them know. When you make payments towards your default or delinquencies it shows your intention to follow through and complete the contract.

     4.  Make a game plan and stick to it

Making a budget and sticking to it is key to staying in the green. One of the worse things an individual can do is let their loans go delinquent and have no contact with their credit union. Delinquencies can severely affect your credit and can cost you much more in the long run. If your credit report shows delinquencies it can affect you when purchasing a home, financing a vehicle, or even getting a new job (more and more employers are pulling credit when offering a position to an individual). Sometimes tough decisions must be made, but it’s always best to explore your options as early as possible. Once your loan goes severely delinquent, your options become very limited.

Before making a tough decision, it makes a lot of sense to sit down and explore your options. When you are experiencing financial problems, it’s easy to feel helpless. But your credit union is here to help, lets us know what’s going on and we’ll explore your options together.

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