MINIMISE YOUR COST OF DEBT & CONSOLIDATE IF POSSIBLE

 

As with mortgages, the government has been working with banks and reputable lenders on forbearance measures, and most are offering 3 month payment holidays during these uncertain times. You have until 14th July, and most lenders will let you apply on line. If the lender is worried about your ability to pay in the future, then they may deny you a payment holiday but should support you in finding longer term solutions (such as more appropriate repayment schedules. 

 

If you take a payment holiday, you will still be charged the interest (just at a later date), which may cause problems down the line. It might be worth considering using your overdraft (as the government are imposing interest fee buffers) in the short term rather than payment holidays. Credit scores will not be impacted by these measures. 

Forbearance extends to high cost credit (e.g. store and credit cards) and car finance - so if you are worried then they are duty bound to help you find a solution. 

It's a good time to review your debts in totality (rather than on an individual basis) and talk to your bank about the most cost effective way to reduce and consolidate debt, but watch out for scams, as fraudsters are taking advantage of the outbreak. Do not apply for anything unless you are 100% sure it is legitimate.

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© Lifefyle Ltd 2019

Lifefyle™ is a registered Trade Mark.

Made by the Lifefyle Team.

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