Martin Lewis has warned UK residents that support for major coronaviruses is about to expire.
As things stand today, if you struggle for money thanks to coronavirus, you are entitled to payment vacation on your credit cards, overdrafts, mortgages, loans or even insurance premiums.
However, after Saturday October 31st, this right will be withdrawn and replaced with “bespoke assistance” which will be displayed to other lenders on your credit file.
“During the lockdown, four key pillars of personal finance support were put in place – vacation, self-employment grants, a general credit boost, and the right to take a three-month payment vacation on most debts,” Martin last told readers of the weekly MoneySavingExpert.com- Newsletters week.
“As we as a nation are far from getting out of the clutches of the pandemic, these plans are gradually being dismantled.”
However, this is not yet the case for payment holidays.
“If you get in before they close, they last 3 months. Therefore everyone should check as soon as possible whether they need one. “
Martin also explained what help was out there.
“Holidays are available for … mortgages, overdrafts, credit cards, personal loans, insurance, auto finance, buy-it-later, self-rent, and pawnbroker loans,” he said.
He added, “There is also a monthly payment and interest break for payday loans.”
But not everyone will have the option.
“If you’ve already had two three-month vacations on a single product and apply for another for the same product, you will be enrolled on the regime after October 31,” he said.
He also had a warning for people taking them out.
“If you need (or will) one, take it, but ONLY if you really need it,” said Martin.
“Paying leave is far better than missing payments without an agreement. Note, however, that there are two main consequences. “
The disadvantages are:
Overall, Martin’s advice was simple.
“Unless you really need a three month vacation then don’t or take a shorter break or make voluntary repayments if you can.
“However, if you are having problems apply now and get the help you need.
“And with the deadline ahead, my standard” only needs to take “the addition of” when you need it or think you really need it soon, “as future help diminishes and this payment vacation is better than what for most will be available after October 31st. “
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