Car Finance Debt Help & Advice
Worried about car finance arrears? PennyPlan’s debt specialists are here to guide you with free, confidential advice tailored to your situation.
- Write off 75%* of unaffordable debt
- One lower monthly payment
- Stop creditor hassle and bailiffs
- Access mental well-being services
Your credit rating may be affected if you opt for a debt solution.
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Struggling To Keep Up With Car Finance Payments?
Car finance can feel affordable at first, but missed payments and mounting arrears can quickly turn into a real worry. If you’ve fallen behind or are juggling other debts, you may already be facing letters, calls, or even the risk of your vehicle being repossessed.
Lenders have the right to take action if agreements aren’t maintained, and this pressure can feel overwhelming when you’re already stretched. But there are always options to explore before things reach that stage.
At PennyPlan, we’ll help you understand your rights, deal with creditor contact, and find a practical way forward. Our advice is free, confidential, and focused on giving you back control over your finances.
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We Help With Most Debts - Not Just Car Finance!
*Mortgage debt can be included if you no longer own the property in question.
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Subject to creditor acceptance. Payment subject to individual circumstances.
Credit Rating may be affected. Fees apply, subject to individuals circumstances.
Reasons To Choose PennyPlan
- Stop all interest & charges
- Write off debt
- Access well-being services
- Reduce monthly payments
Finding A Way Forward With Car Finance Debt
Car finance arrears don’t always happen overnight. It might be a few missed payments that snowball, or a change in circumstances that makes it harder to keep up with your agreement. Once you fall behind, catching up can feel almost impossible, especially if other debts are competing for your income.
This is where a formal debt solution could help. In many cases, car finance arrears can be included in a Debt Management Plan (DMP), Individual Voluntary Arrangement(IVA), or Debt Relief Order (DRO), depending on your circumstances. These options may allow you to lower your monthly repayments, freeze interest, and create a realistic path out of debt.
Car Finance Debt Repayment Plans
Dealing with car finance arrears can feel daunting, but the right plan can ease the pressure and make repayments more manageable. Our advisers will listen to your situation, explain your choices, and help you move forward with confidence.
IVA
Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) brings debts into one affordable payment. Car finance arrears can be included, and part of the debt may be written off at the end.
DMP
Debt Management Plan
A Debt Management Plan (DMP) lets you repay arrears in one lower monthly payment. Ongoing finance costs are separate, but past debt becomes more manageable.
DRO
Debt Relief Order
A Debt Relief Order (DRO) is suitable for people with low income and minimal assets. If eligible, car finance arrears can be cleared after 12 months with no further repayments .
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Get Help With Car Finance Arrears Today
We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.
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Get Help With Car Finance Debt Today
Car finance arrears can quickly take over your thoughts and make it harder to keep up with everyday costs. The pressure often builds quietly until it feels unmanageable.
At PennyPlan, we’ll listen to your situation and walk you through the options available to ease the strain. Our advice is always free, confidential, and focused on what’s best for you.
Take the first step towards a solution that puts you back in control and talk to our team today.
- One lower monthly payment
- Write off 75%* of unaffordable debt
- Freeze interest & charges
- Stop legal action including bailiffs
- Receive FREE well-being sessions
What Happens If You Don’t Pay Car Finance Debt?
If you fall behind on car finance payments, the arrears will build up and your lender will usually contact you quickly. Missed payments are reported to credit agencies, which can lower your credit score and make borrowing harder in the future.
If the arrears continue, the lender may issue a default notice and start recovery action. In some cases, this could lead to repossession of the vehicle. The rules depend on how much of the agreement you’ve repaid. If it’s less than a third, they may take the car back without a court order. After a third, a court order is usually required.
Even if the car is repossessed, you might still owe money if the sale value doesn’t cover the outstanding balance. That’s why it’s important to act early, understand your rights, and explore debt solutions before things escalate.
Tackle Your Debt And Your Mental Health In One Place
Our team are committed to getting your finances and well-being back in top condition
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Find out if you match the minimum criteria we require to enter you into one of our IVA plans
Speak to our debt specialists
Speak to our friendly debt specialists, who will explain all the options available to you.
Choose your debt solution
Now you have all the options available, you can make an informed decision that is right for you and your family.
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What Our Customers Say About Us
Maria
3 days ago
PennyPlan were extremely professional and genuinely caring, I am very happy that I made the call and now have a plan in place and peace of mind. From the first contact to the signing of the agreement it was straight forward and simple plus the staff really are exceptional in the way they listen and understand’ I couldn’t have asked for a better company.
Emily
4 days ago
For over a decade I have kept my money worries to my self away from friends and family one phone call with Leah and I had laid it all bare without a second thought nothing shocked her and nothing wasn’t sortable I’m forever grateful I stumbled across this company and no longer have to worry about money on my own. Highly recommend!!
Daniel
4 days ago
PennyPlan offered insightful, professional and empathetic support throughout my insolvency. Declan in particular was friendly, personable and knowledgeable, and a massive help throughout the process. They offer a no pressure service and allow you to make the best decision for yourself. I highly recommend these guys for anyone struggling with debt.
Mark
1 week ago
I was hesitant in applying for an IVA, But my mind was put at ease on the first call. The whole process was explained to me with complete care and understanding and I didn’t feel judged at all. Since being accepted for the IVA my mental health has improved so much and I now don’t worry about how I am going to put food on the table each week.
Car Finance Debt FAQs
Yes. Depending on your situation, arrears on car finance can sometimes be included in solutions like a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA). Ongoing payments may still need to be covered separately.
It depends on how much of the agreement you’ve repaid. If you’ve paid less than a third, lenders may repossess the vehicle without going to court. After that point, they usually need a court order.
Yes. Missed payments, defaults, or repossession will appear on your credit report and can lower your score. Acting early to manage arrears can reduce the long-term impact.
If your vehicle is taken back, it may be sold to cover the outstanding balance. If the sale doesn’t clear the full amount, you may still owe the remaining debt.
In some cases, yes. If you’ve paid at least half of the total finance, you may have the right to voluntarily terminate the agreement and return the car without further payments (unless the vehicle is damaged).
Definitely. Many lenders will try to work with you if they know you’re struggling. This could include payment breaks or reduced installments. Talking to them early can help avoid arrears building up.
PennyPlan offers free, confidential advice to help you deal with arrears, understand your rights, and explore the best debt solutions for your situation.