Lenders offer minimum monthly payments as a way for you to keep your outstanding debt out of the hands of collections agencies. However, extreme economic hardship can make it difficult to make payments of any size, especially if you have multiple delinquent accounts. If this situation sounds familiar, Resolvly’s debt resolution team can help.

Can’t Make Minimum Monthly Payments? Resolvly Can Help

With that in mind, even if you have a past encumbered with financial difficulties, it’s possible to achieve financial freedom. The following action plan can help you understand your options when minimum payments become too great of a burden.

Mortgage Payments

While it is important to resolve all outstanding debt, your mortgage payment is perhaps the most important. Your home loan is referred to as secured debt, meaning that your residence acts as collateral in case you go into default on your loan. If you miss too many payments, the lender will foreclose on your home.

If you are behind on mortgage payments, your first thought may be to dodge the calls of your creditors and lawyers. You may be surprised to learn that your home loan servicer is likely to be reasonable when you reach out to them. This is especially true in light of post-Coronavirus protections that have been enacted.

Your servicer will likely allow you to request a forbearance. A forbearance allows you to skip some mortgage payments, but they will be added to the end of the loan term. For example, if you skip six payments and your loan is supposed to reach maturity on January 1, 2050, it will now end on July 1, 2050. Since your mortgage payment is likely your largest monthly bill, this will allow you to have valuable time to resolve other pressing matters.

Auto Loans

After your mortgage concerns are resolved, you should turn your focus to your vehicle payments. Without transportation, simple tasks such as commuting to work will become much more challenging. Typically, auto loan servicers will not be quite as accommodating as mortgage lenders. They may be willing to grant you an extension or to accept partial payments; however, you must make sure to request these extensions in writing or you may be surprised with a repossession.

Unsecured Debts

No outstanding debt should be totally ignored. With that said, unsecured debts such as credit cards and personal loans should be at the bottom of your priority list. During financial hardship, you may be forced to skip a few credit card payments to prevent your vehicle from being repossessed. Doing so is far from ideal, but maintaining a home and transportation are far more important.

Get Help

Even if you implement each of these steps perfectly, getting your financial life back on track can be difficult. The best approach to jump-start the process is to eliminate as much unsecured debt as possible. That is where Resolvly comes in. Resolvly’s experienced debt resolution agents can help you to achieve financial freedom through legal approaches. This is the safest and most effective way to reduce your outstanding debt. Their team can connect you with vital resources, including debt relief assistance programs.

About Resolvly

Resolvly is a Florida Bar-approved lawyer referral service that helps clients nationwide to connect with consumer protection attorneys that specialize in debt resolution. The Boca Raton-based company was founded in 2015 and has helped thousands of Americans find the right legal-based solution to reduce or dismiss their unsecured debt. Resolvly adds a personal touch to debt assistance, and our ultimate goal is to help clients with their current debt while empowering them to not end up in the same position in the future. We are devoted to helping our clients reach true financial freedom.