It’s important to remember that a credit card payment holiday is a temporary change to your normal monthly payments, to help you out in the short term.
Things to consider before applying, to make sure a credit card payment holiday is right for you:
- You will have to pay at least £1 a month for 3 months while on the plan.
- If you have a direct debit set up to pay your monthly credit card bill, you must make sure it’s set up to only pay the Minimum Payment Amount, not a fixed or full amount.
- Your reduced payment of £1 will begin on your first statement date after the plan is first set up. The earliest we can start is April 2020.
- During the plan, interest will be charged at your standard rate, and you’ll be able to use your account as normal.
- Currently, we can only offer a 3 month payment holiday. The best time for you to take one out will depend on your personal situation.
- At the end of the payment holiday, the minimum payment goes back to the percentage shown in your terms and conditions. The amount of the payment will always be shown on your statement.
It’s important to remember that if you take a payment holiday, it’ll take you longer to repay your balance. So, you’ll pay more in total for what you borrow.
We really hope this helps but please do think carefully before requesting a payment holiday. Only ask for one if you need financial help immediately and for a short period of time.
If you can afford to make some repayments at the moment, even if it’s just the minimum amount, this may be a more suitable option for you than taking a payment holiday.
If you choose to apply, you’ll need your 16-digit credit card number. You can find this on the front of your card.