If you're struggling to keep up with car finance repayments while waiting for a mis-selling claim resolution, exploring debt management options can be helpful. Here's an overview of some possibilities:
Debt Management Plans (DMPs):
- Professional Management: A debt management company can negotiate with your creditors, including the car finance company, to potentially lower your monthly payments and create a manageable repayment plan.
- Improved Affordability: This can ease the financial burden while waiting for the claim outcome.
- Impact on Claim: Be aware that some finance companies might view a DMP as an indication of financial difficulty, potentially affecting their handling of your mis-selling claim. Consulting with your solicitor beforehand is crucial.
Free Debt Advice:
- Citizens Advice & StepChange: Free debt advice services from organizations like Citizens Advice and StepChange can offer guidance on managing your debts and explore options like DMPs or alternative solutions.
- Citizens Advice debt and money information.
- StepChange debt charity link https://www.stepchange.org/
- Tailored Recommendations: They can assess your situation and recommend the most suitable debt management solution.
Other Debt Solutions (Consider with Caution):
- Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs): These are more complex solutions for severe debt problems. They can involve formally agreeing to repay a portion of your debts over a set period, potentially impacting your credit score for several years. Consulting a debt specialist is essential before considering these options.
Remember:
Debt management is a personal decision. Carefully consider the potential benefits and drawbacks of each option in relation to your specific situation and the mis-selling claim. Consulting with a free debt advice service and your solicitor can guide you towards the most suitable approach for managing your car finance payments while waiting for the claim's resolution.
