Credit card payment holidays
Taking a credit card payment freeze can be very useful if you're struggling with your short-term financial situation. However, there are good reasons why you should avoid doing so unless it's absolutely necessary.
What is a credit card payment holiday?
A credit card payment holiday is when your credit card provider allows you to freeze payments on your credit card, for a set period of time, either in full or partially, giving you some temporary breathing space.
It’s very important to remember that a payment holiday on your credit card is only temporary. You’ll still have to pay the full amount back later. You'll also have to pay back any further interest that's added during the break in payments.
This will mean it'll take longer to pay off your credit card. For this reason, if you can afford to keep paying back your credit card, you should do so. That way, you’ll save money by avoiding interest building up.
Can I take another credit card payment holiday if I've already taken one?
If you’ve already taken a payment holiday on your credit card, and you’re still facing financial difficulties due to coronavirus, you can now take a further three months’ holiday.
Credit card payment holidays can be a good way to ease your financial situation. But if you're worried about your finances, and think you may need more support, you should seek free and impartial debt advice.