Even responsible people get unwelcome financial surprises that knock their plans off track, from storm repairs to unexpected medical bills and beyond. If you’re worried about making your next loan or credit card payment, the most important thing to know is this: the earlier you talk to us, the more we can help.
Most people who fall behind on payments wait, hoping next month will be better. We get it. It’s easier in the moment to let collection calls go to voicemail.
But waiting just makes things harder in the long run. When late fees and interest continue to accrue, your credit score can take hits that last for years, digging you into a deeper hole every month.
At St. Thomas Federal Credit Union, we’re member-owned. That means there aren’t any outside shareholders pushing us to squeeze you for payments. When a member is struggling, it’s our job to help find a path forward, like deferments that pause or adjust your payments while you get back on your feet. But we can only do that when we know what’s going on.
You don’t need to crunch numbers or make a plan to call us. “I’m not sure I can make my payment next month” is enough.
Already in Collections? It’s Not Too Late
If you’re past the point of a pre-emptive call and have already missed payments, you still have options. Here’s what to do:
- Pick up the phone. Avoiding the calls doesn’t make the problem go away and just makes it worse.
- Ask what your options are. Depending on your situation, that might mean a deferment, a settlement to resolve the balance for less than what’s owed or another arrangement altogether. There’s no one-size-fits-all answer, which is exactly why the conversation matters.
- If a settlement is on the table, know that it’s typically reported differently on your credit report than an account paid in full, so it’s worth talking through what that means for you before agreeing to anything.
- Know your numbers, and be honest about what you can realistically pay.
- Get any agreement in writing, so everyone is on the same page about the plan.
Habits That Keep You Out of Collections
Once you’re back on solid ground, a few simple habits can help protect you going forward:
- Build a small cushion. Even $20 a paycheck into savings gives you a buffer when surprises hit.
- Put minimum payments on autopay, so a busy month never becomes a missed payment.
- Look at your statements every month. Problems are easiest to fix when you catch them early.
- Call us at the first sign of trouble. We’re here to help, and the more we know, the more we can do about it.
We’re Your Neighbors, Not Just Your Lender
Financial setbacks can happen to anyone. There’s no shame in that and no shame in asking for help. If money is tight and a missed payment is on the horizon, don’t wait for the letters and phone calls. Stop by the branch or give us a call, and we’ll look at your situation together.