Managing debt in a time of Covid-19

By Mr Bankruptcy

31st March 2020

The financial impact of the Covid-19 emergency is yet to be fully revealed but it is undeniable that it will be serious. For people already in debt, the stress of losing income can seem too much. To help you navigate your finances at this time, we have some key actions that could help.

Be proactive and take action

It’s very hard not to feel additional financial stress at this time because of the lock down and effect of Coronavirus on businesses, but don’t panic. I encourage you to take time to understand your changing situation by following these steps:

  • Revise your budgets: Take another look at your finances, taking account of your likely revised income.  Understand the challenges this may present and look for opportunities to mitigate these.
  • Prioritise debts: Understand which debts are priorities and how your changing income will affect your ability to pay these. Take a look at our post Do you know how to prioritise your debts for help.
  • Speak to your creditors and bank: When you realise that you’re going to start missing payments, contact your bank or creditors to make them aware of your situation. They can help you look for options and will appreciate you being proactive.
  • Seek advice early: Do not bury your head in the sand over debts. When you realise you have a financial problem that you need help with, seek advice. Make sure you aren’t ignoring signs you are in debt.
  • Investigate the new financial support measures: The Government has announced a range of initiative to help business and individuals with financial difficulties caused by Covid-19. Find out which of these may be relevant for you.
  • Check insurance policies: Your insurance may offer income, mortgage, sickness or employment protection. Check whether your policies offer financial support.
  • Already have debt support measures in place? Whether it’s a Debt Management Plan is failing , IVA or other arranged debt solution, if you feel you’re going to struggle to make payments, make contact with your creditors to review your arrangements.

Once you understand your situation it becomes easier to see possible options for moving forward and you can start to feel in control again.

James Rosa Associates

At James Rosa Associates, we support vulnerable clients with debt management daily and are ready to help you.

James Rosa Associates is a firm of debt advisors and debt adjustors. With a friendly, supportive and non-judgemental approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.

Our services include:

● Insolvency support

● Negotiated settlements

● Personal assisted bankruptcy

● Mediation

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.

Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.