Have you heard of the Breathing Space debt scheme? There are many people in this country who struggle with debt. I’ve written about it before, I’ll write about it again. It’s hard to find a way out of debt once you’re in it and for those who do manage, it’s a huge accomplishment. There is free help out there from charities and organisations who can help you get your finances back on track.
It’s often harder than it seems though, as you continue to pay for stuff and have interest mounting up. Maybe even bailiffs on your doorstep. There is now some great news that will help thousands of people! The Breathing Space debt scheme is now in play and it will help those dealing with debt, by giving them 60 days of respite.
What Is The Breathing Space Debt Scheme?
This has been campaigns for for a long time, but it is finally active. This new scheme will give those struggling with debt 60 days to get a handle on their finances. This is without debts piling up, letters coming through the door and even enforcement action. The people who are given access to this Breathing Space debt scheme will have access to proper debt advice and the majority of interest and penalty charges will be frozen. Any potential enforcement action will be paused.
With a huge connection between money and mental health, there will be even stronger protections for those people in mental health crisis. Debt charities have been asking for this to be put in place for a long time and the Government have now done this, expecting as many as 700,000 people to benefit from it in the first year. That is how big a problem debt is currently here in the UK.
Further Information
Obviously, you might be reading this and wondering if you ‘qualify’. It’s worth noting that the Breathing Space debt scheme is not a payment holiday. It’s not an easy way out. It’s a form of help, support, an opportunity to turn this around. Facing up to debt can be a huge deal, realising the situation you are in can be hard. However, using these 60 days can be life changing. Again, burying you head in the sand is not going to help.
Most debt will qualify for this help, including payday loans, overdrafts, utility bills, mortgage arrears, credit cards and store cards. Even those with government debt can access this support. Whilst working with a professional debt adviser, the person with the debt must continue to pay for their ongoing liabilities such as rent or mortgage payments.
This time should be used to come up with a plan of a solution to this situation. It’s also worth noting that the debt adviser can actually cancel this Breathing Space should they feel the person is not complying with the conditions set out.
Final Thoughts
What do you think of the Breathing Space debt scheme that has been introduced? It seems long overdue and I am pleased it will help so many people, hopefully getting them and their finances out of trouble and back on track. There are amazing organisations out there who have been battling to help people who are in debt. This should definitely help make their jobs slightly easier.
