What Is A Missed Payment? What Happens If I Miss A Payment?

The cost-of-living crisis has pushed more and more households into debt, with an estimated 13% of UK adults missing three or payments at some point.

If you are affected, then read on, as falling behind on something like your car finance can be stressful, but the good news is that it can be managed. Here’s how to handle it.

What Is A Missed Payment?

A missed payment means one or more of your scheduled payments didn’t leave your bank account on time.

Why Missed Payments Happen

Missed payments can happen for a couple of reasons:

1. Not enough funds: Sometimes, there just isn’t enough money in your account to cover the payment when it’s due.
2. Simple forgetfulness: Life gets busy, and it’s easy to lose track of dates and accidentally miss a payment.
3. Lack of communication: If you’re struggling financially, you may not have contacted your finance provider, leading to missed payments.

Whatever the cause, it's essential to act quickly to avoid bigger problems down the road.

What You Should Do

The first thing to do is stay calm—missing a payment isn’t the end of the world, but it’s important to take action right away.

If it was a simple case of forgetfulness, call the company now and make the payment.

1. If you simply forgot, contact the company immediately and arrange to make the payment as soon as possible.
2. If you’re having financial difficulties, follow these steps:
   1. Assess your financial situation: Review your budget and figure out if you can make the payment now or soon.
      Need help doing this?
      1. StepChange: Offers free debt advice and solutions tailored to your situation.
      2. National Debtline: Provides free and confidential debt advice over the phone and online.
      3. Citizens Advice: Advice online and in person on a wide range of issues, including debt and money management.
      4. MoneyHelper Budget Planner: A tool to help you create a budget and manage your money effectively.
   2. Reach out: The sooner you call, the more options you’ll have to work out a solution. You can reach us at 01706 648882. Our lines are open Monday to Friday from 9:00 am to 6:00 pm, and Saturday from 9:00 am to 5:00 pm.

What Happens During The Call

When you call, we’ll review your situation with you. Together, we’ll go over your payment history and current finances. From there, we’ll explore the options available, which could include:

• Setting up a new payment plan
• Deferring the payment or taking a payment holiday
• Changing the date your payments are due

The goal is to create a plan that works for you and helps get your payments back on track.

What Happens If You Don’t Call

If you ignore the situation, it won’t go away. Missed payments can snowball, leading to:

• Damage to your credit score, making it harder to get credit in the future
• Potential repossession of your vehicle if multiple payments are missed without addressing the problem

Conclusion

While missing a car finance payment can feel daunting, it’s something that can be managed. The key is to address it quickly—whether it’s a simple mistake or a financial struggle, getting in touch with your finance provider is the first step toward finding a solution.

By staying proactive, you can protect your credit score and avoid further complications.

If you have missed a payment with Marsh Finance and wish to speak to the team, our number is 01706 648882. Our lines are open Monday to Friday from 9:00 am to 6:00 pm, and Saturday from 9:00 am to 5:00 pm.