Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Car payment holiday - unable to get through

60 replies

newyearsresolution2010 · 30/03/2020 16:27

I'm trying to get a payment holiday on two cars I have (both in my name but one my husband pays for).

I have been on hold for hours and can't get through. One came out today (£680) and the other is due on the 3rd (£253).

I don't know what to do in terms of stopping the payment on the second. I know to not cancel the DD but also am panicking if it goes out.

Please don't judge what we pay out each month for this, we can easily afford the cars in 'normal' circumstances, and have paid for them every month for nearly 3 years without any issues or struggle.

I am a company Director, so at best I can close my business (not ideal but it's recruitment so no work) and claim the £575 (after tax) per month, but that isn't going to pay for much.

Do I just keep trying? With a 2 year old not in nursery I don't have hours to spend on the phone as he needs attention.

OP posts:
Elephantonascooter · 01/04/2020 07:13

I'm sorry but why should the finance company suffer because of your poor financial planning. Your car payments alone are double my monthly rent. And you have 1k in the bank as 'back up'??
I don't know if a holiday will help you in these circumstances as it sounds like work isn't going to leap up for you anytime soon. You're better off cutting your losses and asking them if you can give back the vehicle(s).
This is difficult for everyone and I feel for you but learn from this op. Reserves in the bank are important.

DroppedBoxxedRuth · 01/04/2020 07:20

It's not just you OP but so many people have that attitude to savings.

You've earnt good money for a long time and only have £1k in savings? That's shocking.

Personally I'd cancel the DD and continue to hold on the phone. Put it on loud speaker really loud and crack on with entertaining your 2 yo.

And hopefully once this shit storm is over people who have had the ability to save for a crisis do.

CheddarGorgeous · 01/04/2020 07:29

All good financial advice is to have 3-6 months outgoings in the bank. You've been foolish OP but so have most people in the UK. The lack of savings is a national scandal (and I'm not talking about people living on very low incomes).

You have no choice but to sit on the phones for hours to apply for all the help you can get - mortgage holiday, UC, s/e person's help etc. etc. If you have short term cash flow problems you may have to ask for an overdraft extension or a loan from friends and family.

BubblyBarbara · 01/04/2020 07:56

I'm sorry but why should the finance company suffer because of your poor financial planning

Oh no not the poor money landlords, whatever will they do if they miss a payment Hmm get a heart

kilisibird · 01/04/2020 08:21

I earn £3-6k a month, every month, and I’ve done that for over 5 years.

Wow. You must be doing some serious spending every month with such a low mortgage and no other debts. How can you not have enough to tide you over in savings? Once this is all over you really do need to re-evaluate.

kilisibird · 01/04/2020 08:22

Why would I ever think an industry that’s been my career for 15 years would just stop because of a virus no one predicted?

Nobody did. But savings are not a new invention.

TallRachel · 01/04/2020 08:25

You say you have no other debts but your mortgage is interest only. How do you intend to pay off the lump sum borrowed at the end of it?

Wonkydonkey44 · 01/04/2020 08:30

I work for a bank , I would cancel the direct debit or ask for the direct debit to be returned if it’s going out the same day. Email the finance company explaining what you’ve done and why and what you propose going forward . I hope things improve for you it’s bloody awful Flowers

Original poster
newyearsresolution2010 · 01/04/2020 08:59

TallRachel - when did I say my mortgage was interest only?!

OP posts:
Original poster
newyearsresolution2010 · 01/04/2020 09:00

Wonkydonkey44 - Thanks for the advice.
I’m going to go to the office tomorrow (husband is at home) so I have hours to sit on hold to try and speak to them, hopefully!

OP posts:
TallRachel · 01/04/2020 09:03

"TallRachel - when did I say my mortgage was interest only?!"

February 12th this year. First post second paragraph.

www.mumsnet.com/Talk/legal_money_matters/3820703-Borrowing-equity-from-house-but-won-t-take-husband-contribution-as-income

Cao77 · 01/04/2020 09:10

@TallRachel 😂 - ouch op!!

It is really puzzling how you can earn up to 6k per month and only have 1K in savings?! Confused

Totallycluelessoverhere · 01/04/2020 09:24

tellrachel GrinGrin

OP - if you only take £719 plus a small dividend each month from the business does the business not have a lot of money sitting in its accounts which you can withdraw to get you through this tough period?

Original poster
newyearsresolution2010 · 01/04/2020 11:14

TallRachel - it’s now the 1st April....things change.... 🙄

OP posts:
CheddarGorgeous · 01/04/2020 11:30

So you've remortgaged today a repayment mortgage in the last 6 weeks? Did you borrow the 40k for home improvements from your dad? Do you still have this? Could you use that to pay for your cars?

CheddarGorgeous · 01/04/2020 11:30

To, not today

ChainsawBear · 01/04/2020 11:54

Did you really just blithely assume that you would be able to make that much money forevermore? I'm sorry, but having that much inflexible, unsecured debt and no savings was bad financial planning in the extreme. If there had never been a pandemic, there might have been all kinds of other economic shocks. No one saw 9/11 or the 2008 financial crisis coming either. You would be in a very very different position now if you had saved and invested some of your large salary rather than blowing it on luxuries. Take this as a reason to address your financial management long-term.

Short term, you will have to negotiate with the company and/or consider taking the hit to your credit. As PP say put the phone on speaker and just stay on there for as long as you have to.

Original poster
newyearsresolution2010 · 01/04/2020 11:59

I’ve come here for help and advice, not to be told I’m irresponsible and should have planned better.
Hindsight is a great thing.
I wake up every morning crying, I cry several times a day, I’m crying now, I don’t need people to tell me what I should have done, I’m asking for help as I don’t know what to do and don’t want to do anything stupid.

I’m going to leave now as the unhelpful comments have made me feel even worse, and this isn’t helping my anxiety and mental health.

OP posts:
Totallycluelessoverhere · 01/04/2020 12:30

newyear I didn’t accuse you of being irresponsible due to not saving. I did ask whether there was any money in the business you could withdraw because you said it has a big turnover and you only withdraw £719 salary each month plus a small amount to cover personal overheads.
Is there any money you could withdraw from the business to see you through this tough time?
Have you looked into the self employment covid 19 payment scheme? I know this takes a while to come through (June I think) but it might help you negotiate with your creditors if you know you will have this money coming.

kilisibird · 01/04/2020 12:46

So you take £719 a month basic and make it up to anywhere between £3k & £6k in dividends?

Raver84 · 01/04/2020 13:26

Email the finance company. Going forward you need to save some some money.
Spending a grand a month on cars you will never own is poor judgement.

fromdownwest · 01/04/2020 13:37

I am sure no one wants to make your anxiety worse, I think people are just trying to find alternatives for you. With your income, there should be cash somewhere, and I think people are probing to see where.

You have asked for advice, and people have given advice for the future. £1k savings and £1k a month on cars, should not continue. So if you take anything from this, then assuming the worst financially is always the best option.

It may not have been a global pandemic, it could be planes flown into a tower, or banks lending money they don't have, or heaven forbid contracting a critical illness.

One should always prepare for the unlikely events, and hold 6 months expenditure in cash. With your income, this could have been achieved with less lavish car leases.

However, we are where we are. So, sort out the DD's, speak to them about possible returns of the cars and batton down the hatches.

CheddarGorgeous · 01/04/2020 13:40

OP if you run your own successful company in such a cut throat industry as recruitment then I guarantee you have the mental toughness and resources to handle this situation. Dig deep and face facts. Life is going to be a slog for a while. But you will get through this.

There's a new normal. That normal might mean having one less car. You'll survive. You'll bounce back. And you'll have learned some things.

Best wishes.

ChainsawBear · 01/04/2020 16:11

Seriously, having read your previous thread about your interest-only mortgage, you've been living the high life on a financial house of cards. The nature of big economic shocks, whether global or intensely personal (critical illness, major car accident) is that they are unexpected.

People have given you help - your only option is to negotiate with the company and hope that they are flexible. But we would be remiss in not pointing out that your assets and finances have been managed in a completely profligate way thus far, and you really need to overhaul them and change your thinking. Good luck.

Ginger1982 · 01/04/2020 18:38

"I earn £3-6k a month, every month, and I’ve done that for over 5 years. Managing the car payment was never an issue. My mortgage is £280 a month and I have no other debts."

So where has the rest of it been going??