Life can be unexpected and difficult. This is especially true now during the COVID-19 pandemic as many are experiencing economic pains and other unexpected emergencies. If you ever find it difficult to repay your loan on time, no matter how stressful it feels, you will be okay! We know most people who are late on their loans do not mean for it to happen.
We cannot allow a small setback to prevent us from trying again or to cause us to give up hope. You can still rebuild your credit record and get your financial life in order. Here are a few simple ways to get back on track:
Make partial payments.
If you are unable to pay your entire amount due, remember small payments go a long way. Tala specifically appreciates, supports and encourages the ones who try to catch up.
Reach out to your loan provider to see if you have options.
At Tala, we understand that you might be going through unforeseen challenges and want to help you bounce back. Talk with your Tala agent and we’ll help make a plan that works best for you.
Learn from the situation.
Reflect on why you defaulted and see if there are any lessons. If it was due to job loss or a closed business, you probably need to change your budget to match your available resources and chase a new hustle. If it’s a medical emergency, try not to use business money meant for stock, expenditure and other operations because you’ll need a livelihood once you recover.
Where you can, protect yourself from the risk of being late on your loan.
Consider investing in insurance like Tala Tiba and NHIF to protect yourself from the financial shock of medical emergencies or work towards building an emergency savings pool so that you’re covered in the future.
Before taking out loans in the future, be intentional about what you need it for and how you’ll be able to repay it.
It’s important to remember, never take out a loan to repay another loan. This can trap you in a cycle of debt and be very expensive for you in the future.
If you fall, don’t stay down. If you can’t run just yet, walk. If you can’t walk yet, crawl but do not stop going.
You got this!