Hundreds of thousands of people in the UK are currently struggling with debt. With many losing their jobs or being put on reduced hours because of the pandemic, this is a problem which has become increasingly prevalent over the last 12 months.

In order to help those who are struggling to repay debts, a new scheme called Breathing Space was announced earlier this week.

The scheme will give those facing financial difficulties 60 days to get their finances back on track. In this time, they won’t have to worry about debts piling up, worrying letters coming through the door or enforcement action being taken against them because they will be given legal protection from their creditors for the 60 days. Most interest and penalty charges will also be frozen.

People will also have access to professional debt advice which will help them to design a plan to get their finances back on track. There will be stronger protections for those in mental health crisis treatment. Those receiving help will be covered for the duration of their treatment, plus an additional 30 days afterwards.

People across England and Wales who are struggling to repay their debts could be eligible, and the Government expects 700,000 people to benefit in the first year of the scheme. You can find out more about the scheme on the gov.uk website.

If you have any financial concerns and would like to talk to someone, please don’t hesitate to get in touch with PKB.

 

To read news and blogs from Rebecca Austin, click here >>

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