Struggling credit card borrowers offered lower repayments and more time to pay off interest-free overdrafts
when three-month payment freezes come to an end.
But with this three months now coming to an end, firms have been told to contact customers to find out if they can make repayments after their payment holiday and to agree a repayment plan if possible.What is a payment holiday and should you apply for one?This has to be agreed in advance, so don't stop making your repayments until your bank has given you permission to do so.
If you think you need to take one, you should speak to your lender to discuss your options - but do note that the break in payments doesn’t remove any debt or financial obligations. “Any temporary measures being offered by lenders don’t remove financial obligations – they are designed as an emergency measure to help you get through a period where your income may have taken a serious knock.“While taking a payment break would usually be noted on your credit file, the credit reference agencies have confirmed that, during the current crisis, this should not have a future influence on your credit status.
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