CONTACT YOUR CREDITORS
WITH up to half of all working Britons worried about losing their jobs, these are stressful times for the nation.
Being made redundant is many people’s worst nightmare. But with a few simple steps, you can head off the worst by facing down your finances, claiming back cash and identifying where you are going to need help the most. Here’s how to get started.
THE rules about financial difficulties are clear. If you’re struggling to meet your financial commitments and ask the business for help, they should come up with some solutions for you to help you buy some time while you get back on your feet.
They should also consider suspending interest and charges for a short period if it’s making your situation worse.
This doesn’t mean money you’ve spent will be refunded, but it does mean money you’ve been charged on top might be reconsidered if there’s a good reason for doing so. Loan and credit payment holidays are available too so ask and explain if you’re struggling.
Mortgage holidays may still be available after the initial three-month lockdown period, but they do seem to be harder to get. Bear in mind that, despite initial statements, some lenders are now admitting it might make future applications for credit harder if you’ve taken one though – and bear in mind the money you owe is tacked on to the end of the mortgage.
IF YOU DON’T NEED IT, CANCEL IT
NOT using that gym membership? Do you rarely tune in to that TV streaming site? Every little bit adds up – so ditch what you don’t need.
GET A (FREE) PLAN.
IF your financial difficulties are ongoing, then speak to a free service like StepChange, a charity set up to help people get back on top of their finances.
They’ll contact your creditors for you and negotiate payments you can afford. It’s not easy, but it’s a solution.
Never pay for a debt management service – there are free options out there. And bankruptcy and IVAs are very much a final option. Don’t go there unless you are all out of other solutions.
BE REALISTIC
THERE are times when you look at your finances and it’s apparent you can’t afford your property. If that’s the case, speak to the mortgage provider about your options when the pandemic has calmed a little. You may find down-sizing to a cheaper property is a better option than defaulting on your mortgage. No-one likes dealing with problems that threaten your security. So if you’re worried about paying your mortgage then speak to the lender early on so they can come up with solutions for you.
SWITCH AND SAVE
ENERGY use will have gone up considerably if you’ve been working from home, but this is the time of year to switch providers before the price reviews that tend to happen around August.
Take your own meter readings and call your provider asking for a revised bill. Then have a look at the options for switching. MSE have a good switching club for energy here: https://clubs. moneysavingexpert.com/ cheapenergyclub
AND FINALLY…
DEALING with difficult decisions about your finances can seem overwhelming. But once you tackle them head on, the pressure is much less than the burden of worrying but not knowing. There is help out there.
■ Resolver can help you make a complaint about anything for free. Get in touch: resolver.co.uk Worried about your cashflow? Act now to head off the worst