Comment regarding Government’s new ‘breathing space’ scheme

Following on from the announcement yesterday of the Government’s new ‘breathing space’ scheme, Money Guru has issued a comment on what this will mean for those in debt.

Deborah Vickers, Channel Director for Money Guru, said: “The Government’s new ‘breathing space’ scheme set to be introduced in 2021 is good news and will offer a lifeline to anyone struggling with debt. It will support vulnerable consumers and takes a proactive approach to support people who take on debt.

“The scheme’s benefits include a 60-day interest freeze and also stopping any action from creditors, which will give people more time to get the help they need.

“Breathing Space will also give someone in problem debt the right to legal protection from the creditors while they receive debt advice and enter an appropriate debt solution. The plan enables someone in problem debt to enter a statutory agreement to repay their debts to a manageable timeline.”