I no longer have money to pay my loan. What should I tell my creditor?

Tell them the truth.

Don’t fall into the same trap many people get into. They think running away from or lying to creditors are very good plans.

By telling creditors the truth, you’re proving your sincerity in wanting to pay them back. It also shows that you honor and respect your creditors. If they see you’re bent in honoring your obligations, these creditors may be more understanding of your situation and give you some leeway. But if you lie through your teeth or simply ignore them, you give them the wrong impression that you have no plans of paying them back.

This will make them take action against you and make things worse for you.