Talk to a Creditor About Loan Forbearance: A Step by Step Guide

If you need a little breathing room on your debt, loan forbearance could be the solution. Loan forbearance is an agreement to put payments on hold when a borrower is going through financial hardship.

Your creditor may agree to this type of debt relief if you contact them and ask about it. Creditors may offer forbearance options, which could include a complete pause on loan payments, interest-only payments, or payments that only cover a portion of your monthly interest charges. The last one means the unpaid portion of your interest typically gets added to your loan balance.

So you get a break from making your full loan payments, which gives you the opportunity to get back on your feet financially. 

If loan forbearance sounds like a good way to go in your current situation, here’s a step-by-step guide on exactly how to talk to your creditors about it.

1. Make a List of Creditors to Contact 

Go over all your debt payments to make a list of the creditors and lenders you pay every month. Next, prioritize the list. Ask yourself: Which payments would be most helpful to defer right now?

You may want to focus on the largest monthly payments, because if you can get forbearance on those, you free up more money. Or you might want to ask about forbearance for loans with lower interest rates, since those won’t cost you as much in interest if you keep them around longer.

Loan assistance varies depending on the creditor. Options may include:

• Monthly payment deferral

• Waived late fees

• Waived interest

Some creditors might have established the type of assistance they can offer with their hardship programs, while others may offer more flexible solutions on a case-by-case basis. In either case, have an idea of what you’d like to do about your loan forbearance and ask if it’s a possible solution.

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2. Get Your Documents and Information Ready

Gather everything you’ll need when you call or email each creditor, including:

• Account number

• Personal identifier (Social Security number, date of birth, address)

• Total amount owed

• Minimum or monthly payment

• Payment history

• Interest rate

• Number of years you have been a customer

If you know these details ahead of time, you’re probably going to feel more relaxed when you contact your creditors. You won’t need to dig around for information, making it easier for you and your creditor’s hardship department.

3. Schedule Who to Contact and When to Follow Up

After you gather your documents, set up a plan for who to contact and when to follow up. You can do this using a calendar, planner, or your own version of a customer service call tracker. If you plan to make phone calls rather than using email, a call tracker can keep you organized, especially if you plan to call multiple creditors.

Create a spreadsheet with a table like this:

Since the customer service representative may give you a lot of information during the call, it’s important to take notes, including the date, time, and company contact information. Once you are able to negotiate forbearance terms, make note of it in the comments along with the name of the rep and an ID number, if it’s available.

Plan to follow up within three business days and again in one week if you haven’t heard from your creditor. Jot down each time you initiate contact so you have a timeline of communication.

If you use email, you can set up a separate folder for the correspondence. It might still be helpful to keep a running spreadsheet with all the information and notes, as well.

4. Decide How to Contact Your Creditors

Once you have a schedule of who to contact and when to follow up, decide how you’ll reach out. You can find a creditor’s contact information on its website or on your monthly bill. Contact methods may include phone, email, and live chat.

A phone call could be easier than writing, because you can convey more with your tone of voice. It may also be a faster way to get an answer about your forbearance options. In the best-case scenario, your creditor could approve you for loan forbearance in one phone call.

Emails and live chat both leave a paper trail. Written correspondence is helpful if a creditor changes the terms or doesn’t follow through. This format works well, for instance, if you need to talk to your landlord about skipping a rent payment. Email in particular gives you time to gather your thoughts before each message, so there’s less pressure than a phone conversation.

5. Have a List of Questions

Before you talk to any creditor, write down a list of the questions you want to ask about loan forbearance options. This way, you can ensure you get all the details you need in the first call, email, or live chat session. Here are a few important questions you may want to put on your list:

• Will I be charged interest during forbearance?

• How long will the forbearance period last?

• What criteria do you use to grant forbearance?

• Does the forbearance period extend the life of my loan or is a larger payment due immediately after forbearance ends?

6. Use a Script

If you’re going to call creditors, a simple way to help ease any anxiety is to make a script you can follow in the beginning. You’ll be able to go into your call with confidence and no worries about getting tongue-tied. Here’s a quick script option—just fill in the blanks with your own information.

“Hi there, I’ve been your customer for ___ years. I’m having some trouble keeping up with my payments due to [a temporary slowdown at work, medical reasons, etc.]. What options do you have for those in financial hardship?”

If you have an idea of how long you need loan forbearance, you can include more specific requests in your script. Here’s another example:

“Hi there, I’ve been a customer for [number of years]. I’m going through financial hardships due to [a temporary slowdown at work, medical reasons, etc.] and can’t make my payment. What financial relief options do you have over the next [number] of months?”

If the creditor won’t budge, try asking, “How would you suggest I make my payments during my hardship?” Asking “how” encourages the other person to step into your shoes and work with you to find a solution.

How you phrase the question is almost as important as the question itself. A positive, upward inflection of your voice can convey curiosity (question). A downward inflection sounds more defensive (statement). Even in this very stressful interaction, do your best to stay neutral and curious with your voice, so that the person you’re speaking with will want to help you.

Get Professional Guidance on Your Debt Relief Options

You can follow those six steps to call creditors and ask about loan forbearance. If you show that you want to work with your creditor, they’ll most likely want to work with you, too. But you don’t need to deal with creditors alone. Another option is to work with a debt relief company.

If you’d like help with your debt, the Certified Debt Consultants at Freedom Debt Relief are here to listen to your story and offer guidance on what your options are. They can also deal directly with your creditors for you.

Freedom Debt Relief has served over 1 million clients and resolved over $20 billion in debt since its founding in 2002. See if you qualify for our debt relief program today to get control of your debt and build a better financial future.