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money.co.uk comment: FCA coronavirus credit card, loan and overdraft holidays

As the FCA asks banks to offer debt holidays to customers, money.co.uk comments with tips on how to apply for a mortgage holiday and where to get free debt advice.

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Salman Haqqi, personal finance expert at money.co.uk said: 

"Credit card and loan holidays offer a glimmer of hope as pressure continues to build on people's finances. And, if banks move quickly this extra support could be in place as soon as next week. Offering help to those who have lost their jobs, been forced to take pay cuts, or who can't work as they are self isolating.

"Some banks have already put additional support in place, cutting fees on overdrafts or reducing credit card repayments to just £1. If you are struggling to meet payments, you should look up or speak to your bank to see what support they can provide right now.

'Mortgage providers are also offering a three-month payment holiday to those facing financial difficulties due to coronavirus.

"Another step you can take is to look at 0% balance transfer credit cards. These can provide much needed breathing space, helping you avoid paying interest, and can help clear debt if managed well."

Money.co.uk tips for getting free debt support:

Financial advisers and debt management companies charge for their services, which could make your debt problems worse. Instead, get free help from debt charities like:

Citizens Advice can provide free help in person or by phone StepChange Debt Charity can provide advice or a free debt management plan (DMP)

National Debtline can offer free advice by phone and help you set up a free DMP

PayPlan is an independent provider of free DMPs

Shelter is a housing charity that can provide advice by phone, online or in person

Christians Against Poverty can visit you at home to give advice and help you budget

Getting advice can help you to:

  • Prioritise your debts

  • Set a realistic budget

  • Plan how you will pay off your debts

  • Communicate with your creditors

Our spokespeople

Salman Haqqi

Salman Haqqi, Senior Personal Finance Writer

Salman Haqqi spent 10 years as a journalist reporting in several countries around the world. He left the world of journalism to pursue his passion for personal finance.

Read Salman Haqqi's articles and guides
Joel Kempson

Joel Kempson, Personal Finance Writer

Joel Kempson devotes his time to helping people navigate the world of personal finance and make informed decisions about their money. He spent his early career writing about TV, movies, comic books and rock music.

Read Joel Kempson's articles and guides