Struggling with Black Horse Finance debt can feel overwhelming, but you’re not alone. Many people face financial difficulties, and the good news is there are ways to manage and even get out of debt.
Whether you want to negotiate with lenders, consolidate your debt, or explore other options, this guide will provide practical steps and tips to help you regain control of your finances. Keep reading till the end.
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Understanding Black Horse Finance
Black Horse Finance is a well-known provider that helps individuals finance their vehicles including cars, motorcycles, and caravans.
When you make an initial deposit and agree to the financial terms and conditions, Black Horse will buy and own the vehicle from the dealer on your behalf.
When you complete the repayments and interests, the company will transfer the vehicle ownership to you. Your initial deposit will also be deducted from the vehicle’s price.
However, what happens when you can’t keep up with the payments? Let’s explore the options available to you.
Can You Pull Out Of A Black Horse Finance Deal?
Suppose you sign an agreement with Black Horse Finance to purchase a vehicle and you cannot make the monthly payments. What should you do and what options are available to you?
As per the Consumer Credit Act, you have 14 days to withdraw from a finance agreement.
This cooling-off period applies to all forms of consumer credit, including car financing agreements.
Within this period, you can cancel the agreement without any penalty, giving you some breathing room to rethink your decision.
But what if you’re beyond this period? What options remain?
How To Handle Your Black Horse Finance Deal
There are two ways to get out of a Black Horse finance deal after the 14 days: paying off the agreement or terminating the deal voluntarily. Let’s discuss both options in detail.
One way to get out of a car finance deal is to pay off the remainder of the agreement. This means settling the outstanding balance, including any interest and fees.
While this option may seem straightforward, it is often not feasible for many people who are struggling to keep up with their payments.
You can contact the Money Advisor Team for guidance to manage your debts.
Are you struggling with unaffordable debt?
- Affordable repayments
- Reduce Pressure from people you owe
- One simple monthly payment
If paying off the agreement isn’t an option for you, don’t worry. There are other solutions to explore.
Another option is voluntary termination. This involves ending the agreement early by returning the vehicle to Black Horse Finance. However, it’s important to understand the implications. Terminating a car finance deal can affect your credit score, making it harder to get credit in the future.
Additionally, you might also have to pay back the money already loaned, plus any fees and interest charges. To make the right decision, consider all the pros, cons, and potential consequences of both options.
Exploring Debt Solutions
If you want to pay off the Black Horse finance debt but are struggling financially, you can opt for debt solutions. Each debt solution comes with pros and cons and you must choose the best depending on your situation to reap the maximum benefit. Below are the details of the debt solutions in the UK.
A Debt Management Plan is an agreement to pay back non-priority debts in one monthly payment. It’s an informal arrangement that can make managing your finances easier.
While it can impact your credit score, it helps you keep up with payments and avoid further debt. It’s a flexible option that allows you to repay your debts at a manageable pace.
An Individual Voluntary Agreement is a formal agreement to pay back all or part of your debts over a set period, usually over £10,000. This legally binding option can impact your credit score, but it offers a structured way to manage debt.
An IVA can provide you with the peace of mind that comes from knowing you have a clear plan to become debt-free.
A Debt Relief Order freezes debt for a year and can potentially forgive it. This formal option is suitable for non-priority debts under £20,000. It impacts your credit score, but it offers significant relief. During the DRO period, you won’t have to make payments towards the debts included in the order.
Bankruptcy is a legal status for those who can’t repay their debts. It can forgive your debts but has significant implications for your credit score and assets. It’s a drastic step, often considered a last resort, but it can provide a fresh start for those in severe financial distress.
Below is a detailed comparison of debt solutions to help you choose the best one.
| Debt solution | Description | Formality | Debt type | Debt range | Legally binding | Impact on credit score | Monthly Payment | Credit/ Agreement required |
| Debt Management Plan | Agreement to pay back non-priority debts in one payment | Informal | Non- priority debt |
Any | No | Yes | Varies | No (You can inform the creditors) |
| Individual Voluntary Agreement | Pay back all or parts of debts over a set period | Formal | All or parts of the debt | More than £10,000 | Yes | Yes | Fixed over 5-6 years | Yes, 75% agreement |
| Debt Relief Order | Freezes debt for a year | Formal | Priority | Less than £20,000 | Yes | Yes | None during freeze for 12 months | No |
| Bankruptcy | Legal status potentially forgives the debt | Formal | Debts that are hard to pay | Any amount | Yes | Yes | None when you are bankrupt for over 12 months | No Have a high asset risk |
Seeking Professional Help
When facing financial difficulties, seeking professional help is crucial. You can contact a debt advisor or a debt charity.
They can help you explore refinancing options or transferring the balance to a lower-interest-rate credit card.
Below are some debt charities in the UK:
- StepChange
- Citizens Advice
- National Debtline
Professional advice can be invaluable in helping you understand your options and choose the best path forward.
Voluntary Termination With Black Horse Finance
You might consider returning the vehicle to end your agreement with Black Horse Finance. This process, known as voluntary termination, is governed by Section 99 of the Consumer Credit Act. The act protects consumers and outlines the steps you need to take to terminate your agreement.
You can terminate the Black Horse finance claim only if you have paid 50% of the fees, interest, and money mentioned in the agreement.
Source: MoneySavingExpert
The above forum post highlights the termination conditions mentioned in the Black Horse finance agreement and a common question many of you have, whether there are any hidden fees.
You don’t have to pay extra fees when you abide by the terms and conditions in your agreement. Follow the steps below to terminate your black horse finance agreement voluntarily.
If you have any doubts, you can call the Black Horse finance contact number (0344 824 8888) and get the relevant information. The call service is available on the following days.
- Monday to Friday: 8.30 am to 6.30 pm.
- Saturday: 9.00 am to 1.00 pm.
Final Thoughts
Black Horse Finance is a finance company that helps people finance vehicles under certain terms and agreements.
You can terminate a Black Horse finance claim within 14 days without any penalty. However, if you pass the cooling-off period you must pay 50% of the fees and interest outlined in the agreement to terminate it.
If you decide to pay the Black Horse finance debt but are facing financial difficulty, you can opt for a debt solution.
You must consider the pros and cons of each debt solution carefully and choose the best depending on your situation.
Contact a debt advisor or a debt charity, if you need guidance to manage your finances or choose the right debt solution. You can also fill out this online form and one of our professional debt advisors will contact you.
Key Points
- Black Horse offers finances to purchase new and used vehicles from more than 4500 dealers in the UK.
- You have a 14-day window to withdraw from any finance agreement without penalties including the Black Horse finance agreement.
- One method to exit a car finance deal voluntarily is by paying off the remaining balance, including interest and fees.
- Ending your car finance agreement early can affect your credit score and may require repayment of loaned money plus fees.
- If you are facing difficulty in paying off your debts choose a debt solution.
- Debt Management Plan (DMP): An informal agreement to repay non-priority debts in one monthly payment.
- Individual Voluntary Arrangement (IVA): A formal agreement to repay all or part of your debts over a set period, typically for debts over £10,000.
- Debt Relief Order (DRO): A formal process that freezes debt for a year, potentially writing it off, suitable for non-priority debts under £20,000.
- Bankruptcy: A legal status for individuals who cannot repay their debts, offering debt forgiveness but with significant credit and asset implications.
- The process of voluntary termination involves checking your loan agreement, contacting Black Horse Finance, providing written notice, and returning the vehicle.
- Debt-help organisations like Citizens Advice Bureau, Step Change, or National Debt Line can provide guidance and support.
FAQs
Voluntary termination allows you to end your car finance agreement early by returning the vehicle, usually after paying off at least 50% of the total amount owed. Voluntary surrender, on the other hand, means giving up the vehicle because you can no longer afford the payments, but you may still owe money after the car is sold.
Terminating your Black Horse Finance agreement can impact your credit score negatively, especially if you have missed payments or failed to meet the terms of the voluntary termination. It can make it harder to obtain credit in the future, so it’s important to weigh this against the benefits of ending the agreement.
Yes, refinancing your Black Horse Finance loan is an option to consider if you’re struggling with payments. Refinancing can lower your monthly payments by extending the loan term or reducing the interest rate, but it’s important to evaluate the long-term costs and potential impact on your overall financial situation.
Penalties for early termination of a Black Horse Finance agreement can vary depending on the terms of your contract. Generally, if you opt for voluntary termination, you may need to pay the remaining balance to reach the 50% threshold, and you might be responsible for any damages to the vehicle.
You can contact Black Horse Finance for assistance by calling their customer service at the black horse finance contact number or visiting their website for more information. Their team can guide your options and help you navigate the termination process or explore other solutions.
