It is not that uncommon for the average consumer to find himself strapped for cash at times. There are those times when there is simply not enough cash on hand to pay all of the bills. So what can the consumer do if he does not have the cash to pay on a loan? Here are some tips to help reduce any problems you may encounter when you cannot make a loan payment.

The most important thing to do is to contact the lender as soon as you know that you are not going to be able to make the payment. If you are certain that you cannot make the loan payment, calling the lender will show them that you are not unaware of the payment, and it will also show them that you are not trying to ignore them. Put yourself in their shoes, if someone owed you money would you prefer that they call you and tell you they could not make a payment or would you prefer that they be completely silent and leave you in the dark? Most people would prefer the call.

Before you make the call, understand that the person you talk to will probably ask you some questions concerning when you believe you will be able to make the payment. Do not get too creative at this point. If the reason you cannot make the loan payment is a temporary one and you expect to be back to normal in a short while, tell them so.

When you have to miss a loan payment try to keep in mind that the sooner you pay the payment the better off your credit history will remain. If the payment is paid, but less than 30 days late, it will probably not show up on your credit report. If a payment is paid over 30 days from statement due date, it usually will show up on your credit report.

Whenever possible, you want to maintain a clean credit record even if that means making substantial sacrifices at home. Getting this payment caught up as quickly as possible should be your main concern. The reason for this urgency is that once derogatory information goes onto your credit record is stays there for years, and this can have adverse effects on your future ability to borrow money, especially for big purchases such as a home or automobile. The best way to keep your credit record clean is to circumvent any problems before they happen.

When you make the call to the lender, get the name and phone number of the person that you talk to. You may need this later on should any problems or misunderstandings occur. While you are on the phone with this person make sure that you fully understand the remedy that the two of you work out in regards to the missed loan payment. Take notes if you have to, but do not hang up the phone until you are completely satisfied that you understand exactly what you have to do and when you have to do it. Communication is a key element when you cannot make a loan payment.