Borrowing money? Here’s
what to do if you miss a payment
What every borrower should know about delinquency,
including how to avoid it in the first place.
CIBC
Mar. 23, 2021
4-minute read
Whether you have a credit card, a mortgage, a loan or a line of credit, any time you borrow money from a lender you’re required to stick to the payment plan you agreed to. With that said, from time to time you may miss a payment. Perhaps it slipped your mind, or you found yourself in unexpected circumstances such as a job loss or a medical emergency. Regardless of the reason, when you miss a payment your account is considered delinquent. Here’s what that means, how to avoid it and what you can do if you find yourself with a delinquent status on your account.
What does it mean if my account is delinquent?
The short answer is it means you didn’t pay at least the minimum amount on your statement by the due date. You may receive reminders and alerts prompting you to make these payments, and your lender may reach out to you directly to inform you of possible solutions to assist your personal and financial situation.
Some of the ways this may impact you include:
- Late fees and increased interest rates
- Reduced credit score
- Holds or blocks on your account
- Loss of rewards points
Tips to avoid delinquency
At the end of the day, avoiding delinquency comes down to making your payments on time. Here are some ways to make sure you stay ahead of your due date, even if you think you might miss a payment.
- Set up automatic payments
One of the best ways to make sure your payments are always on time is by setting up scheduled monthly payments. You can schedule your monthly payment for the full balance due or another amount. Make sure you have enough funds in your account on every due date to cover the amount due.
- Keep a close eye on your budget
Having a clear picture of how much money you have coming in — income, and where you’re spending your money — expenses, can help you make sure you have enough to make your payments when they’re due. Tools that can help you manage your cash flow include our budget calculator.
- Reach out if you think you’ll be late
If you think you’re going to have difficulty making the minimum payment, reach out to your lender ahead of time to let them know. They may be able to help you find a solution or offer a grace period.
What to do if you miss a payment
Make the minimum payment as soon as possible
Even if you can’t pay off your full balance right away, it’s important to pay at least the minimum payment as quickly as you can to remove the delinquent status from your account. The more days your account is delinquent, the more serious the impact may be. Need to make a payment right away? You can pay your bill online or on your mobile device.
Plan to pay your full balance
The longer you carry a balance, the more you are at risk for future delinquency. Set specific goals regarding paying off your debt. Make sure your goals are clear and defined by including precise amounts with set deadlines, and be diligent in sticking to your plan. This may require some uncomfortable lifestyle changes, but always keep your end goal in mind.
Reach out if you need help
Although you may feel anxious about contacting your lender if you’ve missed a payment, it’s in their best interest to help you find a solution. Reaching out to discuss your situation can help you understand all of your options.
Take control of your finances with our solutions
If you’re having trouble making your minimum payments on your CIBC products, getting in touch with our credit counsellors early can go a long way to prevent your existing debt from growing.
Learn more about debt help.
Borrowing money can help you achieve your goals, but remember that each billing cycle you need to pay at least the minimum amount towards your outstanding balance by the due date. If you think you're going to miss a payment, tell your lender as soon as possible. They can help you make a plan to keep your account in good standing.
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