Do all creditors offer forbearance?
Not all companies will offer forbearance to help you deal with your debts. Most large companies will be covered by the codes of practice above, but smaller lenders may not be.
The forbearance requirements apply mainly to consumer credit debt, such as bank accounts, credit and store cards, personal loans, catalogues and car finance, among others.
This help isn’t available with some types of debt, for example priority debts such as fines, court judgments or decrees, rent arrears, council tax arrears or child maintenance (CSA) arrears.
Will a moratorium or creditor forbearance affect my credit file?
If you’re given a period of forbearance to help you deal with your debt, any payment you miss may be recorded on your credit file. This could affect your chances of obtaining credit in the future.
The formal Breathing Space scheme doesn’t directly affect your credit score, but if you miss payments these will be recorded on your credit file as normal. Although Breathing Space isn’t recorded on your credit file, if a creditor knows you’ve had Breathing Space in the past, this may affect your ability to borrow from them in future.
A moratorium should not impact your credit file.
I’m dealing with mental health issues. What help can I get to deal with my debts?
If you’re struggling with mental health problems as well as dealing with your debts, you may be able to apply for a mental health crisis breathing space.
The first thing you should do is complete a debt and mental health evidence form. If you need to, ask a mental health practitioner to help you do this.
If you need forbearance from your creditors, it could be a sign that you’d benefit from impartial, expert debt advice. Use our online debt advice tool to get started.