What happens if I disclose a mental health diagnosis to my car finance provider?
Buying a car can be daunting enough without the added stress when considering how to handle disclosing any mental health diagnosis. It’s one of those situations where you often don’t know what kind of reaction to expect, and it can add stress and uncertainty to an already turbulent situation. This blog post is aimed at helping car buyers who have been diagnosed with anxiety, depression, or other mental health issues navigate this landscape. We’ll look at the things to consider before deciding whether or not to disclose and give tips for discussing your diagnosis when engaging with a car finance provider.
How can mental health affect your finances?
Mental health and finances are inextricably linked, with poor mental well-being potentially impacting your financial situation.
For instance, issues such as impulsive spending or money mismanagement can lead to debt spirals that cause serious problems, affecting people, whatever their employment status. It can be difficult to manage household bills when dealing with anxiety or depression. Still, the extra worry of money woes also makes managing existing struggles even harder- creating a vicious cycle of stress and further worrying about finance.
Particular conditions like bipolar disorder can also affect how someone sees their own finances, too, making them more likely to be at greater risk financially than others without those same concerns.
When feeling down, it’s all too natural to turn to retail therapy. But next time you’re tempted by a purchase during an emotional dip, take a second and ask yourself: do I really need this? Even better – wait for 24 hours and then check in again with yourself. This pause can help ensure that your decisions are rooted in logic rather than impulse!
The relationship between debt and mental health
Struggling with mental health can have an unfortunate impact on your finances, so it’s essential to be aware of the risks of impulsive spending. Did you know that up to 35% (£18.23 million) of all UK consumer debt is due to credit card use alone? On top of that, about a quarter (24%, or £12.50 million) of UK adults are currently paying off mortgages – plus another 11% (£5.73 million) also owe money on their student loans.
Another key trigger for going into debt is unemployment. Mental health conditions, including anxiety and depression, bipolar disorder and schizophrenia, can limit your ability to work, forcing you into debt.
What are the regulations around disclosing a mental health diagnosis?
Financial providers, car finance lenders included, are becoming far more conscious of their responsibilities in recent times, thanks to the guidance and regulations set by the Financial Conduct Authority (FCA). While it is ultimately up to you to decide whether you want to share personal information regarding your mental health condition, disclosing such information allows organisations like Marsh to understand your situation better and offer support where necessary.
Reasonable adjustments can be made when requested, providing valuable breathing space during a difficult time. At Marsh, we feel it is crucial to remove the shame and stigma associated with mental health so that everyone can access the help they need.
Disclosing a mental health diagnosis to your finance provider
It can be nerve-wracking to open up about your mental health issues, especially when it comes to money. But if you’re struggling with debt, know that there are people who understand and want what’s best for you! A 2011 report by Mind revealed that many folks might not think their finance lender would take them seriously or fear being mistreated – but sharing your troubles could give creditors a better idea of how they can support you in managing payments. Let’s ensure financial worries don’t weigh on us more than necessary.
How can we help?
Like all finance lenders, should you begin to miss payments, we will contact you to determine what’s happened and how you plan to pay us back.
However, at Marsh Finance, we understand that bumps in the road are part of life – so we approach this process in the most empathetic, understanding way we can. If you find yourself running late on a payment or surpassing your lending limit for some time, you must let us know. We want to help by finding out what’s caused this and work with you to come up with a feasible repayment plan—without any aggressive letter writing or overwhelming phone calls. Our aim is always: how can WE support YOU?
We understand that receiving constant reminders about debt when going through an incredibly challenging emotional period isn’t helpful; instead, it’ll likely worsen things. So, it’s important to let us know about your situation. We can signpost you to support and advice and limit the amount of contact from our collections team. This is called ‘breathing space’, and allows you to focus on getting better, free from fees and charges, without being contacted by our collections team.
How can I let you know about a mental health challenge?
You can call us on 01706 648882, or email us at collections@marshfinance.co.uk
Marsh Finance advocates breaking down the stigma surrounding mental health challenges and will do everything possible to ensure you’re getting the support you need upon disclosing a mental health condition.