Why you need to speak to your clients about how their circumstances have changed since COVID-19 – Part 1

It goes without saying that the COVID pandemic has created an unprecedented amount of change across the globe, but how has this change impacted your clients, and what steps can you take to help them?

Over the next week, we’ll split this discussion into two digestible parts, suggesting proactive measures you can take to help your clients and create more opportunities for your business.

Credit status

The most obvious reason is a change in credit status. For many people, the pandemic has caused a reduction in income and an increase of their debts. As a result, it’s likely that more people will experience missed credit payments.

When the mortgage ‘payment holiday’ scheme was initiated last March, many millions of borrowers took advantage of the offer. Initially, when this scheme was announced, it was confirmed that an agreed payment holiday would not appear on a borrower’s credit file. However, the rules changed in November, when the FCA said borrowers would still be able to defer payments after the original mortgage holidays had expired, but that these non-payments would be visible on the records of credit agencies.

Regardless of your clients’ circumstances, there’s a good chance that there might be a change of credit status on their file.

Employment status

Last year inspired many people to seek new employment, for many, including those working in hospitality and travel, this has been a forced change as their industries have been hit hard by the pandemic. Often people have had to take two or three jobs to replace their income from previous employment.

This has led to many people re-evaluating their career. According to the latest “How We Live” research by Aviva, 6 in 10 people want to make some career changes as a result of Covid. So, it is highly likely that many of your clients will have recently experienced a change in employment status, eg. employed to self-employed.

It is worth considering the possibility that your clients may have had a change in their credit and employment status and that by keeping the lines of communication open with them, you will be able to help stay up to date with their needs. By taking a proactive approach, your clients will appreciate your care and attention and continue to bring their business to you.

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