What To Do If The Loan Gets Off Track

If you hit a bumpy patch, communicate. One of the primary benefits of private loans is the flexibility—the contract is between the two individuals, and can be changed as long as both parties agree. Following are some of the most common ways to resolve repayment difficulties:

• Skip a payment. The lender can agree that the borrower will skip the payment in question, but add it to the end of the loan, extending the term by one additional payment period.

• Spread out the payment. The lender can agree to spread out the payment across several subsequent payments.

• Forgive the payment. The lender can choose to forgive the payment entirely so the borrower has some time to focus on making the next payment.

• Restructure the loan. If there is no chance that the borrower can catch up or keep up with the repayment schedule set out in the promissory note, it's time to create a new promissory note with a payment schedule that the borrower can keep.

Virgin Money Client Services staff has helped many clients get their loans back on track with strategies such as these. In our experience, lenders tend to prefer to alter or restructure a payment schedule than see their borrower default. As long as both parties communicate with Virgin Money chances are we can help you get your loan back on track.