With the pressing challenges posed by the current cost-of-living crisis, it’s been reported that the number of Brits struggling to keep up with their bills and financial payments has risen to nearly 11 million.
On top of economic difficulties, life’s unexpected hardships can take a toll on people’s ability to manage their payments, too. From losing your job or a loved one to breaking up with your partner, there are many personal circumstances that can make things extra taxing.
Money and mental health are strongly connected, as poor mental wellbeing can hinder your energy or motivation to keep track of your finances. So, what can you do to stay on top of your payments when times are tough in your private life?
With a focus on car finance repayments, Michelle Rigler, Head of Portfolio at First Response Finance, offers actionable advice for drivers grappling with personal challenges.
Get in touch with your lender
First things first, don’t be afraid to communicate with your car finance provider and inform them about your situation. Lenders have a responsibility to help and will no doubt provide you with a range of solutions to navigate your circumstances in the best possible way.
Rigler said: “If you’re experiencing a difficult situation, one of the best things you can do is contact your lender and briefly explain what’s going on. Most finance providers are more than happy to work with people facing personal hardships, and even more so if you demonstrate a willingness to find a shared solution.
“At First Response Finance, for example, we’re always open to offering payment extensions while staying faithful to the original contract.
“If you happen to overrun on your contract, this might unfortunately affect your credit score – but don’t worry, we’ll never penalise you for it.
“To support you to the best of our ability, we also encourage an honest conversation to discuss whether what you’re experiencing is a one-off or an ongoing challenge. If needed, and if it’s the right thing for you, we can offer reduced repayments going forward.”
Seek professional help or advice
If it’s all getting a bit much, you may want to seek professional help or advice, whether it’s from a credit counsellor, financial advisor, or a mental health specialist.
Professionals can provide you with much-needed, personalised strategies and guidance to help you walk through difficult times. They can also give you the chance to evaluate your situation from a more objective point of view and assist you in making informed decisions on how to manage your car finance payments.
When it comes to money, decision-making often becomes a challenge – let alone amidst a personal crisis. In fact, no matter their personal situation, 47% of Brits say they’re not confident in making decisions about financial products and services.
So, if you’re going through an overwhelming period in your private life, make sure you don’t suffer and struggle in silence.
“If you’re finding it difficult to juggle your personal problems and your financial payments, seeking professional help can be the breath of fresh air you deserve,” Rigler added. “At First Response Finance, we care about the wellbeing of our customers, and are quick to signpost you to organisations and charities you can use for support.
“For example, if one of our customers is struggling following the loss of a loved one, we advise them to speak to Cruse, a bereavement charity that helps people cope with grief.
“Likewise, if someone is looking to understand what benefits they may be entitled to based on their personal circumstances, we direct them to MoneyHelper, Citizens Advice, or Turn2us for that all-important expert guidance.
“Ultimately, we want to empower our people to get hold of their current situation, and we’re on hand every step of the way to ensure they do just that.”
Assess your financial situation
Another way to manage your car finance payments during a personal crisis is to take a moment to assess your financial means.
It’s easy to lose control of the situation when you’re struggling with your personal life, but having a hard look at your spendings can prevent the issue from snowballing.
Consider your overall financial picture, including salary, savings, and monthly expenses such as bills and food shopping. With all the figures in front of you, you will gain a better understanding of your financial standing, which will, in turn, allow you to determine how to best tackle your car finance repayments.
This might be anything from setting up a specific budget for your instalments to cutting down on those expenses that aren’t really a necessity.
If you’re looking for advice on how to manage your car payments during a delicate phase of your life, there are plenty of options out there to help you navigate this tricky moment.
From contacting your lender to seeking professional help, you can overcome your challenges with more confidence, safe in the knowledge that you have all the support you need to keep your car repayments in check.
