If you have lost your job or your income and you realise that you will have nothing to pay on the loan, but you have not yet missed any payments, then you are in a relatively safe situation.

The first thing you should do is make sure you contact the loan company or bank where you took out the loan and be honest about the situation.

What is a possible solution to the problem?


Many banks and MFIs offer this option before you default. In this case, you pay a small amount of money for the extension and you have the option to pay back the loan later.

Loan holidays

If the loan is large, at best you may be granted a loan holiday. This is a period when you don’t have to repay the loan so that you can get your finances in order. It is worth bearing in mind that credit holidays will come to an end sooner or later, so you should prepare to pay off your debt when they are over.


The lender can offer you a loan extension or refinancing. You will be given the opportunity to repay smaller amounts over a longer period of time. The disadvantage of this method is that you will end up paying more.

Selling your collateral

If you really can’t repay your loan, but it is secured, then the secured property is sold unless 90% of the mortgage or car loan has been repaid.

Selling assets to pay off debts

If the loan is unsecured, the property of the borrower to be sold to repay the debt is stipulated.

Responsibility of the guarantor

If a loan is taken out on behalf of a private individual or company and the borrower is unable to repay it, the guarantor becomes liable for the repayment in full.

Extrajudicial enforcement of property

If your contract with the bank includes a clause about extrajudicial enforcement of your collateral, this means that the bank has the right to take over your property for its own benefit if you fail to pay the loan. In order to avoid losing your pledged property before the court, you must write a waiver of extra-judicial enforcement of the pledged property.

Every bank has a delinquency department that will contact you a few days after you miss a payment to remind you of your debt.

If you haven’t reported money problems to the bank before, it’s a good idea to come clean at this time. The bank will try to contact you to solve the problem amicably and suggest ways of resolving the problem.