I am unsure why this new “breathing space” scheme is back in the news, as not only was it something introduced a couple of years back, but most creditors have been offering it to account holders for some time now. Especially during the past year, when many people were on furlough, or lost their jobs.

What this breathing space relates to is a period of time, 60 days, where someone who is in debt and experiencing financial problems, has 60 days to sort matters out; sort matters out without the phone calls or notices from collection agents over payment.

This breathing space can only be used once in a 12 month period, and is not for priority bills, such as rent, mortgage, and utilities.

The time-frame is more to allow those in debt a way to find a solution, or way out of debt.

Which for some will be seeking professional advice, and possibly going bankrupt, or some other form of insolvency.

If someone is seeking help or treatment for mental health issues, there are other schemes and assistance available to them.

Most creditors in these pandemic times, have been offering account holders a breathing space, and some have even offered a payment holiday on some accounts. This means that payments can be postponed for a couple of months or longer. Unfortunately, some creditors do not freeze the interest charges, so the balances can increase, and without making payments, the accounts are reported to the credit bureaus as being in arrears.

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