Concerns over the impact of the COVID19/coronavirus pandemic on people’s finances has led the UK’s main financial regulator to ease things for those with credit card debt.
The Financial Conduct Authority’s has suspended credit card persistent debt rules. The UK financial regulator says concerns over the impact of coronavirus on people’s finances, means it has told banks no one can have their card suspended until October at the earliest.
Anthony Morrow, CEO of OpenMoney, in response to this. “ Those who are only able to make minimum repayments on their credit cards could unsurprisingly be most at risk, and therefore the most vulnerable, if left without credit altogether.
“So it’s reassuring to see the FCA responding, providing credit card users with a much-needed safety net during these uncertain times. We all need to do what we can to limit the financial burden that this crisis has created, and we urge people to stay resourceful with their finances.
Anthony recommends anyone experiencing financial difficult checks whether they are entitled to any benefits. And if you do need to use credit for the short-term he says to make sure you opt for the form with the lowest paying interest and avoid overdrafts. As always, if you are concerned, we’d recommend contacting the Money Advice Service for guidance.
Other announcements include the HMRC’s decision to suspend reforms to the IRC35 off payroll payment regime until 2021 and three month mortgage payment holidays for those struggling to pay a home loan.
If everyday finances are your concern Faith Archer, financial journalist and blogger at Much More with Less has written a great guide to the 30 cupboard essentials and a guide to help protect your personal finances as the Covid-19 outbreak continues.
The Pensions and Money Advice Service has also set up a Facebook page for those worried about the impact of the coronavirus on their savings.
MoneySavingExpert has also issued some guidance on Coronavirus money and travel need-to-knows. MSE says its guides are being constantly updated on issues such as the impact of the latest FCO warning on travel plans and how energy firms have moved to help prepay customers unable to top up.
We will keep updating you as the situation changes.
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