Martin Lewis has shared an important credit card update with the nation.
The financial guru, who owns the Money Saving Expert website, has been keeping people in the know throughout the pandemic on everything from passports to mortgages.
He’s featured important advice on his ITV1 programme The Martin Lewis Money Show, as well as regular appearances on This Morning, updates on his Twitter page and of course his weekly MSE newsletter.
This week, he revealed credit cards, personal loans and catalogue debt payment holidays are due to be extended until October 31, reports Birmingham Live.
In his newsletter, Martin wrote: “On Friday, regulator the Financial Conduct Authority (FCA) published proposals which included extending card and loan payment holidays for those struggling due to the pandemic.
“It’s a lightning-quick consultation, almost certain to be rubber-stamped and in place by July.”
If you’ve not yet applied, you have until October 21, and if you are already on a pay holiday, you can ask to extend it for a further three months.
Partial pay holidays are allowed if you can repay some but not all of it.
Martin stressed: “My view is IF YOU NEED A PAYMENT HOLIDAY, DO IT, BUT ONLY IF NEEDED. The reason it’s not a ‘grab it’ is two-fold.
“First, because the holiday is just a deferment, you still have to pay what’s missed, and the interest that’s racked up, later. Plus, while it won’t go on your credit file, as I revealed a month ago, payment holidays can affect credit scores as lenders use other methods to detect them.
“But if you’re struggling to repay, and need cash flow, do it. Better that than killing your finances.”