BORROWING & DEBT

Sue Anderson is head of media at debt charity Stepchange. Q WHAT IF I CAN’T MEET THE MINIMUM PAYMENTS ON MY LOANS, CREDIT CARDS OR ‘BUY NOW PAY LATER’ ACCOUNTS?

AExplain your difficulties to your creditors and see if they can offer you a payment holiday. You might also benefit from some budgeting guidance to see if there are any ways you could make your money stretch a bit further. It’s not usually a good idea to borrow more money if you can’t meet your minimum payments.

Q IF I’M REFUSED A PAYMENT HOLIDAY, WHAT CAN I DO?

AThe regulator expects most providers of loans and mortgages to offer three months of forbearance to give you time to work out a longer term plan. However, if you’re refused a payment holiday and you’re unable to make your minimum payments at the end of the month, seek help from a free debt advice organisation such as Stepchange, National Debtline or Citizens Advice. They will be able to evaluate your financial situation and see what your best next steps could be.

If you’re refused a mortgage holiday, complain to the provider and, if you’re still not satisfied, contact financial-ombudsman.org.uk.

Q HOW CAN I BEST SUPPORT STRUGGLING FAMILY MEMBERS?

ABe careful. Encourage your family to make use of the schemes available to supplement their income. If possible, persuade them to reduce their outgoings in the short term and encourage them to take debt advice if they have big problems. Financial issues are one of the leading causes of relationships breaking down, so tread carefully.