Breathing Space

If you’re finding it difficult to keep up on payments, you might end up receiving phone calls and letters from your creditors who are chasing you for debts. Being chased for debts can be stressful but, remember, there is action that you can take to reduce this animosity. 

The majority of creditors will agree to stop contacting you for a short period of time if you need time to get in touch with a debt advisor or work out how you’re going to deal with paying your debts. This is called ‘breathing space’.

What is breathing space?

60-day moratorium for people struggling with debt, giving them the right to protection from creditors

Available to anyone who meets the criteria

Those receiving mental health crisis treatment will receive the same protections until their treatment is complete, to acknowledge the impact problem debt has on wellbeing.

Contacting your creditors

It’s important that you contact each one of your creditors and let them know that you’ve taken advice from a debt advice organisation. You can let them know over the phone, by email or letter, or in person. Of course, it is likely that your creditor will request proof that you are trying to sort out your debt problem.

You will find that a lot of creditors want to cooperate with you and help you solve your debt problems. Having a breathing space can give you time to contact a debt advice service; this is very important for the person in debt and it will generally make the creditor’s job easier.

On top of this, creditors are also required to allow you breathing space as it is included in the industry codes of practice; this is a code that almost all UK lenders and debt collectors must follow.

Will breathing space affect my credit file?

If you’re given a period of breathing space to help you deal with your debt, any payment that you miss may be recorded on your personal credit file. Because of the impact on your credit file, this might make it harder for you to obtain credit in the future.

Woman smiling with her kids after managing her debts

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