Since the loan is usually for a large amount and tied to an asset, a lender is unlikely to write off the debt. If you are struggling with your repayments it’s important to contact your lender to see what help they may be able to give. It is essential that you don’t just stop paying.
It is highly unlikely that a lender would write off a secure loan, so the only ways to get rid of them are the following:
- Continue pay the loan off as usual, treating as a priority in your finances.
- Change the payment plan to either make larger payments to shorten the payment term, or pay it off over a longer period of time, reducing your repayments.
- Sell the asset that the loan is secured to and use the money to pay off the loan. If the amount of money raised by the sale is lower then the balance owed, then you will still need to pay off the remaining amount.
To find out more, take a look at our Secured Loan Debt page.