Daily Junction.mobi portalPersonal Finance · May 6, 2026 · Rachel Stone · 5 min
Job loss, illness or bereavement can make repayments hard to keep up. This guide explains why telling your lender early matters, what options may be available, and where to find free, confidential support.
Life does not always go to plan. A job can end without warning, an illness can stop you working, or the loss of someone close can turn your finances upside down overnight. When that happens and the repayments you once managed easily become a strain, the most important thing to know is this: you have options, and the earlier you talk to your lender, the more of them you have. This is general information, not personal financial advice.
It is natural to want to hide from a problem you cannot immediately fix. Many people avoid opening letters or answering calls when money is tight. But with borrowing, silence is the worst strategy — because lenders can do far more to help before payments are missed than after.
Contacting your lender early gives you the widest range of solutions, helps you avoid late fees and the credit-file damage that missed payments can cause, and replaces dread with a plan. It is almost always less stressful than waiting for the situation to escalate.
Lenders deal with changing circumstances all the time. Asking for help is not a confession of failure — it is exactly what the process is designed for. The people who struggle most are usually those who wait longest to make the call.
If you are even slightly worried about an upcoming payment, that is the moment to act. Our guide on contacting your lender early explains why timing makes such a difference.
You are not relying purely on goodwill. Firms regulated by the Financial Conduct Authority (FCA) are expected to treat customers fairly, and that includes showing forbearance and due consideration to people in financial difficulty. Under the FCA's Consumer Duty, firms must act to deliver good outcomes — and supporting customers whose circumstances have changed is part of that.
In practice, a good lender should:
This expectation of fair treatment is at the heart of responsible lending, and many lenders publicly set out how they support customers through hard times. UK lender Credicorp, for example, describes how it supports customers when their circumstances change — a useful illustration of the kind of help a regulated lender can offer when life takes an unexpected turn.
There is no one-size-fits-all answer, because the right solution depends on your circumstances — particularly whether the setback is temporary (a few months between jobs, say) or longer term (a lasting change in income or health). Common forms of support include:
| Option | What it means | Often suits |
|---|---|---|
| Payment holiday | A short, agreed pause in payments | A brief, temporary gap |
| Reduced payments | Paying less for an agreed period | Income temporarily lower |
| Extended term | Spreading the balance over longer to lower monthly payments | A lasting change in budget |
| Pausing interest or charges | Freezing some costs while you recover | Preventing the debt from growing |
A few important caveats:
For a fuller picture of how these work in practice, see our guide to payment arrangements, which explains the common types and how they affect what you eventually repay.
A little preparation makes the call easier and more productive. Before you contact your lender:
If it helps, a free debt adviser can speak to creditors on your behalf or coach you through what to say.
You never have to face this alone, and you should never pay for debt advice. Several respected charities and services offer free, confidential help:
These organisations are impartial, will not judge you, and can often suggest options you may not have known existed. Reaching out to one of them is frequently the single most useful step a worried borrower can take, especially if your difficulty is part of a wider squeeze and you need help seeing the whole picture.
Most lenders want to help, but if yours is unhelpful, dismissive or refuses to consider reasonable support, you have rights. Start by raising it through the lender's complaints process — our guide to complaining about a lender explains how. If you are not satisfied with the response, you can escalate to the Financial Ombudsman Service, a free and independent body.
When your circumstances change — through job loss, illness, bereavement or any other setback — the worst thing you can do is stay silent. Contacting your lender early opens up the most options, from payment holidays to reduced payments and longer terms, and FCA-regulated firms are expected to treat you fairly while you recover. Asking for help simply does not carry the stigma people fear. And whatever your situation, free and confidential support from StepChange, Citizens Advice and others is only a phone call away.
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