How to Pilot Your Personal Loan Repayment During the Coronavirus
Australian businesses haven’t yet absorbed the devastating financial impact of the Coronavirus, leaving thousands unable to repay personal loans. Due to lack of trade and the rapid closure of non-essential businesses, many are forced out of once-thriving careers. If you find yourself unable to shoulder the cost of your personal loan, consider the following relief measures.
How Do You Manage Your Payments?
If the Coronavirus outbreak has caused significant damage to your financial health, first contact your creditor. More often than not, creditors come prepared with hardship measures for borrowers on the verge of defaulting. These borrowers might span the unemployed, those suffering from illness, or individuals experiencing family conflict.
After contacting your credit provider, they can assist in freezing your interest or waiving your fees altogether. Alternatively, they might extend your repayment period or create a more flexible repayment arrangement. Other creditors might demand smaller payments to meet outstanding debt.
Are Banks Offering Relief Methods for Personal Loan Borrowers?
Yes—however, banks are extending this assistance primarily to those repaying small business loans. Some banks will also directly prioritise person banking customers. To determine whether or not you have a place on this list, contact your banking provider.
What if Banks Don’t Offer a Coronavirus Relief Plan?
If your bank or creditor doesn’t employ an appropriate relief plan, don’t fret—private lenders can help. Most lenders will have unique options for financial hardship assistance to satisfy unforeseen circumstances. You can find a list of these creditors online.
If your lender isn’t listed, it’s just as essential to reach out to a representative. As the pandemic is unprecedented, thousands of companies are rallying to protect and assist customers in times of need.
What Are the Other Options?
If you find yourself out of a job due to the pandemic and your lender isn’t providing support, you can consult other avenues. Local charities such as the Salvation Army and other local community centres will have options in place. You can also apply for JobSeeker Payment or get in touch with your insurance provider.
Otherwise, you can explore state government measures. Under severe circumstances, you may be able to freeze your household bills and charges or receive student support services.
Should You Take Out a Personal Loan Now?
While it may seem intuitive to take out a personal loan to shoulder immediate needs, consider other options before choosing to take out more finance. You can seek help from close friends or family members or explore alternative options for running your business if you still have the opportunity to do so. That said, some Australian lenders are currently offering personal loan products to affected customers at a discounted rate.
With thousands of businesses and individuals feeling the economic stress of the COVD-19 pandemic, many lenders are working to adjust to customers who can no longer afford their plan. If you’re struggling to keep up with monthly fees on top of household operations, explore the options available.
Coronavirus or not, we at Business Loan Experts can put you in better control of your budget. If you’re having trouble with your small business loan in Melbourne, we can help keep a watchful eye on your finances and get planning for the future.