If you’re finding it difficult to keep up on payments, you might be receiving phone calls and letters from your creditors chasing you for debts. Being chased for debts can be stressful, but remember, there is action that you can take to reduce or stop it for a period.
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 either by email, letter, over the phone, or in person. It is likely that your creditor will request proof that you are trying to sort out your debt problem.
You’ll find that a lot of creditors want to cooperate with you and help you solve your debt problems. Allowing you breathing space to give you time to contact a debt advice service is an important part of this and 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 which 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.