If you are having trouble meeting your monthly loan repayments and you are looking to switch lenders then there are a few tips you should follow in order to avoid being caught out.

First of all there are some lenders you should be very wary of. For instance some lenders give loans to anyone, regardless of how bad their credit history is. However these types of lenders also tend to be much tougher on you if you end up falling behind on your monthly repayments. Interest rates charged by these lenders are also often far higher than the standard variable rate charged by mainstream lenders. So what seems like a good deal at the start can end up becoming a bit of a nightmare.

If you find that you cannot move lender for whatever reason but at the same time find that you also cannot keep up with your monthly repayments then one option that might be worth considering is extending your term in order to cut your monthly bills. Another thing you can do is move from a repayment to an interest-only deal in order to give you a bit of extra time in sorting out your finances.

If you do find you are struggling with your payments and are running out of options go and talk to your lender. They might be willing to help by organising a repayment plan that will help you out of a difficult spot. Most banks and mortgage lenders would prefer that you keep paying, rather than have your house repossessed, especially in the current climate of falling house prices.  You can also go and talk to charities such as Citizens Advice or the Consumer Credit Counselling Service.