Money.co.uk's comments on the debt holiday scheme - updated following confirmation by FCA of measures being approved
Salman Haqqi, personal finance expert at money.co.uk said : "The FCA confirming credit card and loan holidays will offer a glimmer of hope as pressure continues to build on people's finances. 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."
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
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