Struggling with your bills? Don’t ask, don’t get.

There’s a lot of uncertainty and confusion about the potential impacts of Covid-19. If you are suddenly experiencing a change in income, which affects your ability to pay some of your bills, there are some actions you can take to alleviate some of the financial stress you and your family might be feeling.

When it comes to bills, the first thing you’ll have to do is contact your bill providers to assess whether temporarily reducing payments or getting a payment holiday are options available to you. There are three basic negotiating techniques to keep in mind when doing this:

1. Be prepared what outcome you are seeking

If you are going to speak with a lender, be prepared! If your household income is going to be reduced, by how much? And how much money do you need to live off? It’s best to prepare a household budget prior to any discussions which shows your reduced income and essential living costs.

2. Establish where the common ground lies

Be precise, accurate and give the loan or service provider as much information as possible about the impact that Covid-19 has had on your ability to pay bills. If you have any documentation to prove a loss of income or change of circumstance, make sure you have this to hand. Companies (for the most part) are doing what they can to help people during this uncertain time. But only by starting the conversation  can you find common ground around your situation and make a plan. 

3. Reach a fair outcome

What is good for you needs to also be good for them. Lenders want individuals to stay active, motivated members of society but also need to agree to terms that will see them get their money back and keep their own businesses running. Agreeing an outcome that gives you flexibility to deal with these unprecedented times but also gives lenders longer term confidence will prove mutually beneficial to both sides.

Most importantly try to stay positive, you aren’t the only person in this situation, millions are in this, it isn't forever. You will get through this.

By being proactive you are setting yourself up for less financial strain and it’s much easier to negotiate before you fall behind on payments. 

For further information and tips visit Stepchange’s website