How a Hardship Variation Could Work For You
If you are having a hard time keeping up with your loan payments because of sudden illness, unemployment or other financial difficulties, contact your creditors about applying for a hardship variation. You can apply for changes in your repayment schedule, such as:
- Ask for smaller payments over a longer period
- Postpone your payment for a certain period
- Postpone your payments for a certain period AND extend your payment term
Before you contact your creditors either in person, through phone, or in writing, be ready with your loan information such as your account number, loan term, and your last payment. Also, make sure that you can afford the payment term you are asking for. Your creditor is required to respond to your request within 21 days.
For more information from Money Smart on how to apply for a hardship variation, click here.