Payday Loan Repayment Relief during the COVID-19 Outbreak

Payday Loan Repayment Relief during the COVID-19 Outbreak

23/06/2020

For millions of people living across Scotland, the COVID-19 pandemic will have placed an additional strain on finances.

For those with repayments to make on payday loans, however, some help is at hand.

As of 27 April, payday lenders must offer payment breaks to customers who have been financially impacted by the pandemic.

If you contact your lender, you can now ask for a one-month payment holiday, during which you will accrue no extra interest.

You can ask for this payment holiday from now until 27 July, and it will be granted for one month after the date it was agreed with the lender.

You will eventually need to pay the cost of the missed instalment, however lenders need to allow you to do this in a manner that is affordable which could be an extra payment at the end of your term, or smaller additions to your existing monthly payments.

The breaks given on payday loans are much shorter than the payment holidays for mortgages, motor finance and credit card debts. This measure will help tide some over, however, for individuals with existing issues with debt, this is unlikely to be enough to fix longer term problems.

If you feel you are struggling with debt, and cannot see an end to these issues, contact our advice team today. We are here 6 days a week to advise on all the options available. Call now on 0141 300 5656 or book a call back below.

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