Almost everyone misses a payment at some point in their life. If you just missed a payment, don’t beat yourself about it too much, because your interest rate will do it for you. Once you miss a payment, you’ll find that your interest rate goes up considerably. This can create an unfavourable financial situation. In some cases, it can create a domino effect that can throw people off track unexpectedly and put them in a hole that’s difficult to get out of.
Here’s what you need to know about what can happen when your interest rates go up after missing a payment.
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What Happens When You Miss a Payment
A number of things happen when you miss a payment. Missing a payment, fuels a series of events that can put you in a difficult financial situation. The damage is double-sided because most people only miss a payment because they’re already in financial distress.
By missing a payment, you’ll automatically incur a stroke-worthy interest rate and a first-row ticket to the bludgeoning of your credit score.
The worst thing about having your interest rate increased is that you’ll have to scrounge up even more money to make the next payment. It’s a nasty little circle this, one could assume that if you missed a payment, you probably don’t have the money to cover another payment with a higher interest rate.
Unfortunately, your creditors are unlikely to appreciate the desperation of your position and will be expecting to be paid regardless of how much harder raising the interest rate made things for you.
How to Scrounge Up the Money to Make Payments with a Higher Interest Rate
Although coming up with the money to make payments with a higher interest rate might seem impossible, the solution to your problem might be simpler than you think. While banks and credit unions are bound to give you the cold shoulder, you can find the financial sustenance you need from a reliable short-term lender.
Short-term lenders don’t work the same way that banks and credit unions do which makes them much more flexible comparatively. A short-term lender like Cash Advantage of Victoria, British Columbia can put cash in your hand even if you have a terrible credit score.
When your interest rate shot up sky-high after missing a payment and you don’t know what to do, try applying for a short-term loan. As long as you have a paycheck to count on or the title to a vehicle, you can qualify for a payday loan or a title loan respectively.
Get Enough Money to Cover Your Payments and Have Some Left Over, with Cash Advantage
Cash Advantage prides itself on its ability to help customers solve their financial problems and support them as they get back on track. When you take out a short-term loan with us, you’ll have enough money to cover your payments and have cash left over, now that’s a win!
Don’t let high-interest rates from missed payments keep you down, start winning today, with Cash Advantage!