Clearly we are living in unsettling times. Unprecedented lockdown requirements followed by uncertain employment status has led many to seek further financial help. And help in financing their debts. We may have never heard of the word “furlough” till days ago but now the idea of receiving 80% of our normal wage is commonplace.
And IVA companies are struggling too in order to establish criteria for accepting new enquiries. If income has reduced, albeit temporarily, it may well not be the time for thinking IVA’s. Someone may say they are on 80% income but could afford £10/mth on their debts in an IVA. But if they can afford £100 now creditors will assume they can afford a whole lot more once income resumes to a 100% level.
If our income reduction is clearly linked to the Coronavirus, then creditors have to take requests for a payment holiday seriously. And its hard to believe any creditor will pursue legal action during these difficult days if our inability to pay is a result of the pandemic. As ever, priority payments come first – mortgage/rent, bills, food on the table etc.
But for some this may be just the right time to take a long look at our finances. If we’ve been struggling anyway, and repayments are harder and harder to make – then get some advice now regarding options and possibilities.