Last Covid mortgage, loan and credit card payment holidays end this weekend
Borrowers were able to suspend their debts for up to six months during the pandemic if their income had been affected by the spread of Covid-19 – but the last payment holidays will end on July 31
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The last payment holidays issued during the coronavirus crisis for troubled mortgage, credit card and loan customers are due to end this weekend.
During the pandemic, borrowers were able to suspend their debts for up to six months if their income had been affected by the spread of Covid-19.
The deadline for taking a new payment holiday was March 31 of this year, with all breaks having to end by July 31, 2021.
Or if you had previously requested a payment deferral that did not last more than six months, you may have extended that respite period past the March 31 deadline.
Again, the rules stipulated that aid had to end by July 31 and could not last more than six months in total.
The Financial Conduct Authority (FCA) said customers can request a payment break for mortgages, credit cards, personal loans, payday loans, buy now, pay deals later and finance a car.
We tell you what to do if you are still having difficulty:
What other help is available?
Ask your lender for help: First of all, you should speak to your lender immediately if you are still having difficulty, as FCA urges companies to always offer some kind of support.
Aid will be on a case-by-case basis and tailored to each person’s circumstances, rather than a general suspension of payments.
For example, if you can’t pay your mortgage, you might be able to check whether extending the length of your borrowing period is a wise option.
Lenders can also suspend interest on your monthly payments.
Most importantly, you need to make sure that your lender informs you of the long-term impact of these options, for example the additional amount you will pay in total if you extend your mortgage.
If you are worried about paying off credit card debt, the company from which you borrowed money may be able to offer reduced payments for a short time.
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But again, be sure to ask how that will affect the total amount you owe, as lower payments mean you’ll pay the money back for longer.
You should also note that any personalized support you receive will be flagged on your credit report, which could affect your chances of being eligible for a loan down the road.
Never stop making payments if you are having trouble, as this could hurt your credit score and will likely make the problem worse.
James Andrews, personal finance editor at money.co.uk, said: “No matter what plan you put in place, it’s important to remember that the payments you missed on your vacation mean your debt isn’t. hasn’t decreased like it normally would – meaning it might now take longer to pay and see you billed more globally.
“Banks are required to explain what any new options will mean to you when they are presented to you.
“For example, if you change the length of your mortgage, your monthly payments will go down, but that means you’ll pay more interest overall because the loan takes longer to pay off. “
Check if you are eligible for benefits and subsidies: If your income is still affected, it may be helpful to find out if you are eligible for benefits.
You can use a free benefits calculator, like the one from the Turn2Us charity, to see what you may be entitled to.
Recent estimates claim that there is £ 15 billion in unclaimed benefits because people don’t realize they are entitled to help.
Turn2Us also has a free grant calculator where you can see if you can get a free grant to cover costs.
Simply enter your zip code and information about your situation to see what help might be available.
Since these are grants, they usually don’t need to be repaid – but check the terms and conditions carefully to be sure.
Seek advice from a debt professional: Finally, if you are really struggling, don’t suffer in silence.
There are many free services that will help you take the next steps to tackle your debt. Talk to: