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Getting help · Lesson 7 of 10

Talk to Your Lenders: When to Call and What to Ask

Learn when to call your lenders, what to ask for, how to keep a record, and why you should never ignore court papers.

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THE WRITTEN LESSONFollow along at your pace

If you are struggling to pay, the people you owe would usually rather hear from you than chase you. In this lesson you learn when to call your lenders, what to ask for and how to keep a record. This is general education, not legal or financial advice, and rules differ from country to country.

Call early

Call before you miss a payment, not after. Once payments are missed, fees can be added, the interest rate can go up and your credit scorecredit score: A number calculated from a credit report that estimates how likely a person is to repay borrowing on time. Scoring models, score ranges and what they include differ between companies and countries, and lenders also weigh income and other details.Full entry in the glossary can drop. Calling your lender yourself is free, so there is nothing to lose by asking. You do not need a company to do it for you.

A calendar says Due: 15th, with the words Call two days before and a ticked Call before label. A ringing phone sits beside three red warning cards, Fees, Higher rate and Lower credit score, under the line Miss it and you can pay more. A chip says Calling is free.(opens the full-size picture)
Call before the due date, while you still have choices.

What to ask for

Start by explaining that you are finding it hard to pay, and ask what they can offer. That might be a lower interest rate, a payment plan with smaller payments or a short break in payments. Many lenders have hardship options, which are ways to help people who are stuck. In some places the rules even require lenders to offer help.

A card called What to say holds two lines, I'm finding it hard to pay and What options do you have. Three option cards sit beside it: Lower rate, Payment plan and Short break. Chips read Many lenders have hardship options and Some must offer help.(opens the full-size picture)
Two plain sentences, then listen to what they offer.

A short script

You do not need clever words. Say what is true, then ask a question: “I’m finding it hard to pay. What options do you have?” Write the answer down before you agree to anything.

Keep a record

Keep a note of every call: the date, the name of the person you spoke to and what was agreed. Then ask for the agreement in writing, and keep it until the debt is paid. A written agreement protects you if the lender’s records ever disagree with yours.

A notebook headed Call log lists three things to note: Date, Name and What was agreed. Beside it an envelope and an AGREED document with a dollar coin, a ticked chip Get it in writing and a chip Keep it until the debt is paid.(opens the full-size picture)
Date, name, what was agreed, and then get it in writing.

If debts go further

If payments stop for several months, a debt can be sold to a collection company. You still owe it, just to someone else. And if you ever get court papers, do not ignore them. Respond by the deadline, because ignoring them can mean losing your chance to defend yourself.

A row of months: Month 1 Paid, then Months 2 to 5 Missed. Below, a card moves from a Lender building to a Collector building with the red words You still owe it. A court letter sits beside a calendar with Deadline circled in red and the chip Respond by the deadline.(opens the full-size picture)
Missed months can lead to a collector and a court letter: respond by the deadline.

Know your rights

Rules on collectors and courts differ from country to country, and many places limit how much can be taken from your pay. If you are unsure, a free debt advice service can explain your rights where you live.

A globe and a law book with the chip Rules differ by country. A payslip with a shield beside it is labelled Limits on what can be taken. A smiling adviser with a speech bubble Your rights stands next to the words Free debt advice.(opens the full-size picture)
Rules differ by country, so ask a free adviser about yours.

YOUR TURN

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Read the full lesson script

Welcome back. If you're struggling to pay, the people you owe would usually rather hear from you than chase you. In this lesson, you'll learn when to call your lenders, what to ask for, and how to keep a record.

Call before you miss a payment, not after. Once payments are missed, fees can be added, the interest rate can go up, and your credit score can drop. Calling your lender yourself is free.

Explain that you're finding it hard to pay, and ask what they can offer. That might be a lower interest rate, a payment plan with smaller payments, or a short break in payments. Many lenders have hardship options, and some must offer help when people are stuck.

Keep a note of every call: the date, the name of the person you spoke to, and what was agreed. Ask for the agreement in writing, and keep it until the debt is paid.

If payments stop for several months, a debt can be sold to a collection company. You still owe it, just to someone else. And if you ever get court papers, don't ignore them. Respond by the deadline, because ignoring them can mean losing your chance to defend yourself.

Rules on collectors and courts differ from country to country, and many places limit how much can be taken from your pay. If you're unsure, a free debt advice service can explain your rights where you live.

So remember: call your lenders before you miss a payment, and ask what they can offer. Keep a record of every call, and get agreements in writing. And never ignore court papers. Respond by the deadline. Before the next lesson, write a three-sentence call script for your hardest debt. Next, you'll weigh up consolidation and balance transfers.