Personal Loan Forbearance and Hardship Programs
For millions of people COVID-19 has impacted their ability to pay all their bills. If you have a personal loan your lender may also offer assistance, in the form of payment deferrals or reduced payments. These options are a different than some of the hardship options offered in the mortgage and auto loan categories. Some creditors may also require proof that you're dealing with a financial hardship which could include copy of a layoff letter or other materials documenting a furlough, reduced hours or wages.
Assistance From Personal Loan Lenders It is important to note that these assistance programs won't reduce or forgive your debt, but they can certainly it easier to manage other bills without impacting your credit.
Deferred Payments The most common option from lenders appears to be loan deferment, which allows you to temporarily pause your payments. Typically lenders offer a 90 day deferment. In this option interest will still continue to accrue on your loan while it's in deferment.
Reduced Payments Another option is to reduce the monthly payment then simply deferring your monthly payment, Typically any unpaid portion will be added to the overall amount and will extend the repayment window.
Applying for Assistance Due to COVID-19 many lender call center hours have been reduced and wait times are very long. A better option would be to use a lenders app or your online account to request assistance, and save yourself time.