How to deal with car finance arrears

I’ve been on the same wage for a couple of years, but it feels like everything else is more expensive. At the moment I am struggling with my car payments. I need it for work. What can I do to keep it?

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Payments It's best to contact your car finance provider as soon as possible

With the rising cost of living and increasing interest rates, many people are finding it harder to keep up with their car finance payments. Whether your car is on a hire purchase (HP) or personal contract purchase (PCP) agreement, falling behind on repayments can be stressful.

The good news is that there are practical steps you can take to regain control of your finances. You can start by looking at your monthly income and outgoings. Identify which expenses are essential, such as rent/mortgage, council tax, utility bills, food etc. This will help you clarify how much you can realistically afford towards your car finance.

There are many free budgeting tools online that you can use to get a clearer picture of your financial situation and see where you could save on spending.

If budgeting doesn’t help and you're going to struggle with your next payment, it’s best to contact your car finance provider early and let them know about your financial difficulties to avoid further complications.