A spotless payment record of loans will help you immensely in the long run. Lenders will line up lucrative credit deals to take you on board. Given the importance the timely payment holds to your future credit aspirations, you should be watchful of your existing debt obligations. But many of us fail to pay our loan EMIs on time and incur late payment charges.
The reasons can be many. Some fail to do due to loss of earnings, some due to poor financial management and some due to late credit of salary. In case the last one is your concern, you can get the loan EMI date changed from what it was agreed upon at the time of loan application. This way, you can avoid those unnecessary late payment charges. Let’s read how you can change the loan EMI date.
Ask the Lender to Reschedule Your Loan EMI Date
The late payment charge is levied at 2% on the overdue amount. In case you are paying a home loan EMI of INR 40,000 but do it lately due to late credit of salary in your account, the late payment charge could be INR 800. If you let the situation go this way, you could pay INR 9,600 a year extra. If you have taken the loan for 20 years, the extra payment could amount to INR 1,92,000 over the said period. See with just INR 800 extra, you could end up paying around INR 2 lakh more to the lender. Sooner you wake up, the better it is for you.
Rescheduling Becomes Even More Important When You Have Multiple Loan EMIs to Pay
A lot of borrowers are paying multiple loan EMIs of which some could be for the long term and some for the short term. Different loans having different EMI dates are a foregone conclusion. With that, there’s always a possibility of getting late on some EMI payments if you are getting late salary credit or failing to do so due to a lack of proper financial management. You have already seen above how late payment can lead you to pay so much extra. And if the late payment charges are levied on more than one, the extra payment will notch up further. It will be better to get all EMIs on a single date so that the payment can be seamless. Another way would be to have a very little gap between the EMI dates. Just ask the respective lender to reschedule the EMI date to what’s being suggested.
Shall You Do the Same to Credit Card Bills?
Yes, you should if the late credit of salary is making it tough for you to pay the credit card bill on time. No point getting late payment charges added to your billing cycle every month. And, if you have already revolved the credit by paying the credit card due partially, it becomes all the more important to reschedule the due date of bill payment. The revolving credit on credit cards attracts interest on the unpaid balance at a rate of 2.5%-3.5% per month, which goes on to 30%-45% a year. And, if you are making a late payment, it will further add to your woes. You can reduce the burden by requesting the lender to reschedule your credit card bill payment date.
How Should You Approach the Lender for Rescheduling the Loan EMI or Credit Card Bill Payment Date?
Go to the respective lender and request it to reschedule your loan or credit card payment date. Ask the lender to reschedule the loan EMI date citing late salary credit as a reason. The lender might ask you to submit a bank statement showing the late credit of salary. If the details are found genuine, the lender can change the loan EMI date to a day or two after the scheduled date of salary credit. This will ensure timely payment and avoid late payment charges.
What if the Lender Does Not Accept Your Payment Reschedule Request?
In this case, you need to save as much as possible, do a rejig to your spending pattern and invest in monthly income plans. If you are also using credit cards besides paying loan EMIs, ensure you don’t shop too much. Figure out the expenses that are unnecessary and can be done away with. All these would hopefully save you enough for the loan EMI payment. You can also think of doing a balance transfer to another at a lower rate of interest and to someone who could agree on putting the date of loan EMI you want.