Missed a loan payment? Steps to take now

If you have missed a loan payment, start by checking what happened and contacting the lender. You do not need a perfect solution before making that call. Clear information about the missed amount, your next income and essential costs will make the conversation more useful.

For a NovaCash loan, call (877) 431-4134. Have your contract and account information nearby. If you know in advance that a payment will be difficult, contact the lender before its due date.

Confirm the payment status

Check the scheduled date and amount against your bank activity. Note whether the payment is pending, completed or returned. If something is unclear, ask the lender or bank to explain it before sending an additional payment.

Review the contract's terms for missed payments and any notices received. Costs and consequences depend on the agreement and applicable rules. Do not rely on a generic article for a particular late fee, grace period or sequence of actions on your account.

Prepare a realistic proposal

Write down your next confirmed deposit and the essential spending it must cover. Include other scheduled debt payments. Decide what you could pay without creating an immediate shortage for housing, food, medication or transport.

When you call, explain the cause briefly and give the relevant dates. Ask what options are available. A payment arrangement requires confirmation; the lender may not be able to offer the change you request.

• What amount is currently overdue?
• Are there any charges, and where are they explained in the contract?
• Is another withdrawal scheduled?
• If a change is possible, what would the new dates and amounts be?
• How would it affect the remaining balance and total cost?

Get any agreement in writing

Ask for written confirmation before treating a conversation as a revised schedule. Check that it covers the missed amount and explains what happens to the regular payments still coming due. Keep copies of messages and a note of the date and person you spoke with.

If the proposed catch-up payment is too high, say so. A commitment based on money you will need for essentials may lead to another missed payment. The FCAC guide to paying back debt discusses working with creditors and choosing a manageable repayment plan.

Understand the wider consequences

Unresolved arrears can lead to additional costs or collection activity, depending on the contract and law. Ask about your own account rather than assuming a fixed timeline. Ask NovaCash whether and how missed payments are reported to credit bureaus rather than assuming a reporting policy.

If someone contacts you to collect a debt, keep the notice and confirm whom you are dealing with. The Quebec consumer protection office's rules for collection by a creditor explain the provincial framework.

If several payments are becoming difficult

Gather all debt statements, balances and due dates. Add income and essential bills to see whether the problem is one delayed deposit or a continuing shortage. Consider seeking help through the FCAC guide to finding a credit counsellor.

A new loan deserves the same affordability review as any other borrowing. Compare its full cost and payments before using it to address an existing debt.

Before paying off the balance

NovaCash's published FAQ allows early repayment without penalty. Ask for the exact payoff amount and payment instructions, then keep the confirmation. For ongoing payments, use your accepted contract and any confirmed amendment as the record of what is due.