A borrower who can no longer repay their loan must react as quickly as possible to prevent the situation from deteriorating. Ignoring unpaid installments leads to penalties, registration in negative databases and, in the worst‑case scenario, legal proceedings. By taking the right steps early, you can often negotiate solutions that make your budget manageable again while avoiding long‑term damage to your financial situation. The first objective is to stabilize your finances and clarify your overall debt situation. This may involve reviewing your expenses, prioritizing essential payments and seeking appropriate support. If the problem becomes inextricable, it is crucial to explore amicable solutions with all concerned parties, rather than waiting for creditors to initiate enforcement measures. When dialogue is opened in time, many lenders are willing to consider arrangements such as rescheduling installments, temporary payment holidays or even restructuring your debt. When this is no longer enough, legal tools such as mediation and collective debt settlement plans can offer a structured way out of the crisis, while preserving a decent standard of living.

The Right Reactions to Have from the Very Start

Banks often have several alternatives to help you overcome repayment difficulties. This may include a loan buyback with more advantageous conditions for a single loan, or a consolidation of several loans into one with a longer term and lower monthly installment. You can also negotiate a new structure for your loan, for example by extending the repayment period to reduce the burden on your monthly budget. Even if you feel embarrassed or guilty, keep in mind that early and transparent communication is usually perceived positively by creditors. It demonstrates your goodwill and your desire to honor your commitments. In many cases, this can make the difference between a flexible, negotiated solution and a rigid, costly recovery process with additional fees.

When and How to Contact the Mediation Service?

If your bank does not respond within one month, or refuses any arrangement, it may be necessary to turn to the justice system and resort to the debt mediation service. This step becomes particularly relevant when your income no longer allows you to meet all your financial obligations and your debts appear impossible to repay under normal conditions.

What About the Mortgage Loan?

In the case of a mortgage loan, the consequences of non‑payment can be particularly serious because the lending institution has guarantees allowing it to recover the sums due. If you default on your mortgage repayments, the bank can enforce the guarantees it holds, such as a personal guarantee, a wage assignment or other means of recovery provided for in the contract. If these solutions do not allow the creditor to fully recover its claim, an enforcement seizure of the mortgaged property can be implemented. This may ultimately lead to the sale of your property. This is why contacting your bank at the first sign of difficulty is even more crucial in the context of a mortgage loan, in order to discuss temporary solutions or restructuring before legal proceedings are initiated. If you already find yourself in a situation of prolonged non‑payment, do not wait for the last reminders before reacting. Turning to a mediator or specialized advisor as early as possible can help you explore all legal and contractual options still available to avoid or limit the consequences of foreclosure.

How to Protect Yourself Against Default?

A loan is a long‑term commitment that impacts your future budget. Before signing, it is therefore essential to make an honest assessment of your professional situation and repayment capacity. Consider the stability of your job, the financial strength of your employer and any foreseeable changes in your income. As much as possible, avoid multiplying loans at the same time, as this increases your vulnerability in the event of an unexpected event (illness, breakup, loss of employment, etc.). Various forms of insurance and public support can protect you against difficulties in repaying your loan due to life’s uncertainties. For Flanders, the “Verzekering Gewaarborgd Wonen” is intended for a loan with a term not exceeding 10 years and aims to provide support in the event of a drop in income. For Wallonia, the Free Insurance against Loss of Income can cover an annual ceiling of €6,200 for a maximum of 3 years. By combining prudent borrowing behavior, realistic budgeting and appropriate protection mechanisms, you significantly reduce the risk of finding yourself in a dead‑end situation. In 2026, in a context of economic uncertainty and fluctuating interest rates, anticipating these aspects is more important than ever for any borrower planning a real estate project or another major financing.