Could a payment holiday help ease your financial situation?
By Mr Bankruptcy
26th November 2020
Lockdown followed by the impact of Covid-19 restrictions have led to many people losing their income or seeing it severely reduced overnight. Banks and lenders have reacted by introducing short term payment holidays to support their customers while they adjust to their new situation.
The time period for payment holidays has been extended into 2021, so could this be an option for you if you now find yourself struggling with repayments?
When can you take a payment break?
The Financial Conduct Authority (FCA) has established temporary measures for banks and lenders to support customers who are struggling to make payments. These payment holidays cover a broad range of products, which include:
- Mortgages: You can apply for a mortgage payment holiday until 31 March 2021. Initially lasting for three months, you can now apply for a total of six months holiday payment, but all payment deferrals must end by 31 July 2021. However, during your mortgage payment holiday you will still be charged interest.
- Credit cards and loan repayments: This includes car finance, store cards, credit union loans and catalogue credit, to give just a few examples. Again, you can apply until 31 March 2021 for a payment holiday on these types of products. They generally last for three months initially, but they can also be extended to six months, during which time interest will continue to be charged.
- Payday loans: These are treated slightly differently as only a one-month payment holiday will be given and it can’t be extended, but interest will not be charged during the payment holiday. You have until 31 March 2021 to apply.
If, at the end of your payment holiday, you continue to struggle to make payments, tailored help will be made available to manage ongoing financial challenges.
Seeking advice about payment holidays
The BBC reported in October that 85% of UK adults have at least one loan of one type or another. The fact that 2.5 million people have taken a payment break from their mortgage since the beginning of the pandemic illustrates just how important payment holidays have become and may continue to be.
My main message here is don’t hesitate to speak to your lenders to understand fully how a payment holiday could apply in your particular circumstances and remember the 31 March deadline for applying.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes. Our services include:
- Insolvency support
- Negotiated settlements
- Personal assisted bankruptcy
- Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you need to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you could qualify for one of our free consultations.
We’re a finalist for the TRI Awards 2020
By Mr Bankruptcy
13th November 2020
We are very excited to announce that for the second year running, James Rosa Associates are a finalist for the Turnaround Restructuring & Insolvency (TRI) Awards for Personal Debt Solution Provider of the Year.
In addition to being a TRI Finalist, we have also been recognised again this year with an award from SME News following our 2019 win in the category “Personal Debt Advisory Firm of the Year 2020” and were awarded “Financial Reconstruction Specialist of the Year 2020” by Corporate LiveWire.
Last year, when we reflected on our 2019 TRI recognition, we were in a fortunate position to be able to write about what a successful year 2019 had been for James Rosa Associates. At that time no one could have predicted what 2020 was going to have in store for us all, with a global pandemic and economic shutdowns affecting us in so many ways; so to be in the position again in 2020 to announce another nomination, as well as the other recognitions we’ve received by our industry, is something we feel very honoured and grateful about.
As a business James Rosa Associates continues to grow, which for me means we can offer even more clients the help they need in what is invariably very difficult and stressful circumstances for them, both personally and professionally. And by helping them take back control of their financial situation we can also help them find a way through their debt and take back control of their lives too. We won’t be letting all of these awards go to our heads.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes. Our services include:
- Insolvency support
- Negotiated settlements
- Personal assisted bankruptcy
- Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.