Financial hardship support is meant to provide temporary respite from the time that you are unable to settle regular settlements until you can may repayments in full. This is when your economic condition goes back to normal. It is possible to work out a new arrangement that can be fair and easily met. Assistance for financial hardship is generally made on a case to case basis. It is important to inform your bank of these circumstances. Do not wait until you are lagging behind in paying loans and the collection agency has sent you a formal notice.
You have to be honest. In such case, you can still be given hardship assistance even in this state of debt. In case you are in a state of financial hardship, go through these following steps:
- Evaluate your personal situation and determine the degree of your indebtedness.
- Call a representative of your bank and give notice of your hardship.
- Provide all the information about your condition to the bank.
- Maintain close communications with your bank.
It is vital to take a look at your current income and monthly expenses. This will allow you to know your financial capacity. It is a way of figuring out how much can be allocated for your loans and still have enough for food, utilizes and rent. Be ready to do away with unnecessary expenditures. Most banks have hardship teams that specialize in these cases. Get in touch with this group immediately.
Be candid and inform the team once you are not capable of making repayments. You can do this in writing or even verbally. Inform the bank about timelines when you can deal with these issues. The bank is willing to compromise so you can reach a solution that is favorable to both. Discuss a new repayment plan with the bank if the current one is not viable.