What happens if I miss a loan repayment?

If you miss a loan repayment, there are generally consequences. Firstly, your credit score may be negatively impacted, making it more challenging for you to obtain credit in the future. Additionally, late fees or penalties may be applied, increasing the overall cost of the loan. Repeat missed payments could also lead to the lender initiating legal actions or engaging debt collection agencies to recover the outstanding amount. It is crucial to contact the lender immediately if you anticipate a problem with repayment, as they may offer hardship options, such as forbearance or extending the loan term, to help you manage the situation. Open communication and proactive steps can minimize the potential long-term consequences of missed loan repayments.