Times are difficult, and if you’re struggling to repay loans or credit cards because of the outbreak, did you know you can ask for a payment freeze of up to three months?
This payment freeze covers borrowing options such as: credit cards, store cards, personal loans, guarantor loans, logbook loans, home collected credit, and some credit union loans.
However these borrowing options would have to be from lenders who are regulated by the Financial Conduct Authority.
It does not cover buy now pay later arrangements and high-cost short-term credit, such as payday loans, or some car finance deals like hire purchase or Personal Contract Purchase (PCP). The FCA has asked firms to come up with a package of support measures to help you if you have any of these types of credit.
Temporary payment freezes were made available from all lenders from the 14th April 2020 and taking advantage of payment freezes because of Coronavirus will not affect your credit rating.
Payment freezes are still subject to approval by the lender and if you can afford your repayments you should continue to make them.