Most lenders will ask you to set up a monthly Direct Debit
- This means the loan repayment will be automatically taken from your account without you having to worry about remembering to make payments at the right time.
- Many lenders will also take your debit/credit card details as a backup.
- If your Direct Debit fails and you have not been in touch to let the lender know not to, they will use these details to catch up on the payment to stop your account falling into arrears.
- This means that you will stop your loan account from falling into difficulties without realising.
It is important to make your payments on time, as per your agreement, as this could even help build your credit rating.
Although most lenders do know that from time to time, unexpected things crop up that might affect your ability to repay, the important thing is to contact them straight away to discuss a way forward, not to bury your head in the sand and try to ignore the problem.
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