What Happens When You Miss a Repayment?

Don’t let the consequences of missing a repayment catch you by surprise

Whether you find yourself in the middle of a financially tight month or just let this important financial obligation slip your memory, missing repayments can and do happen. Unfortunately, along with missed repayments come consequences. If you are unsure of what those consequences are, educate yourself by reading further.


It’s important to remember from the onset that when you sign the documentation for a loan or any other official financial assistance, you are entering into a legal and binding agreement. Both parties must fulfil their responsibilities as outlined in the contract. In your case, this will mean accepting all repayment terms. Especially the amount and date of payment.

We all cringe at the thought of parting with our hard-earned cash, but is risking a non-payment worth it? We’ll let you decide as you read through the consequences that await non-payers.

Late fees

The first line of defence for a lender after a cautionary warning is a late fee. This amount will be added to the already outstanding amount, and while it might feel inconsequential, repeat delays will end up souring your relationship with your lender. A lender’s leniency will vary but the best approach is to pay what is due, when it is due.


Once a lender loses faith in recovering what is due, they may very well resort to repossession or foreclosure depending on the collateral. It is the best means for a lender to salvage whatever portion of the outstanding loan remains, a situation you want to avoid at all costs.

Your credit score

Fortunately, one missed payment won’t lead to a plummeting credit score which bars you from securing finance in the future. However, a missed payment will cause a shift down in your ratings, with multiple missed payments resulting in a significant blow to your credit score.

Debt collectors

Lenders won’t seek the help of debt collectors after just one missed payment. If it becomes a habit, they may request the assistance of collection agencies. This will mean a never-ending stream of phone calls that will test your patience. What’s more, your credit score will decline.


If you fail to respond to cautionary messages, or emails and phone calls from debt collectors, your financier may file a lawsuit.

A word to the wise

It’s clear that disregarding the repayment of your loans offers no benefits so rather than allow the situation to escalate, facing it head on can provide some much-needed relief. It is always recommended to keep an open dialogue with your lender so they can understand your financial situation. You may be able to come to an agreement on a payment plan that suits both you and the lender.

We have a wealth of experience working with both personal and commercial clients. Backed by a team of dedicated professionals, we’re on hand to offer advice as well as a wide range of finance solutions. Talk to Yes Loans for dependable services from a team of finance experts.

Yes Loans offers car loans, commercial loans and a variety of other finance solutions to suit your specific needs. With an online calculator, a dedicated team of experts and fast approval times, you should contact us today.