Advice for people worrying about debt

Citizens Advice Derbyshire Districts explain more about a recently-launched scheme to help people worrying about debt as lockdown restrictions ease.

As life opens again and we try to get back to normal, you may have worries about debt. On 4 May, a new, free scheme was launched called Breathing Space, which is designed to help people with debt problems.

Once set up, it offers people up to 60 days protection from enforcement and additional fees and charges relating to their debts.

The idea of a breathing space is to give people time to work towards a long-term debt option. During the 60 days, you will provide information to your debt adviser, who will look at eligibility and whether the scheme will be a good idea for you.

To be eligible, you need to have at least one qualifying debt and be a resident in England or Wales and not already be in a Debt Relief order or IVA.

Qualifying debts are arrears on essential bills such as Council Tax, rent and utility bills and also non-priority debts like credit cards, loans, benefit overpayments etc.

Some debts cannot be included - these include Magistrates Court fines, child maintenance arrears, student loans, and fraudulent debts.

Once you are confirmed as eligible, and have decided the scheme would be useful, your debt adviser will add you onto it and your creditors will be told not to contact you to chase payments. You should continue to pay your ongoing household bills whilst you work towards a debt solution. You must continue to work with your debt adviser throughout breathing space so that at the end of the 60 days you are already moving towards a solution.

After your Breathing Space ends, your creditors are allowed to start contacting you again and take further action to collect your debts. Any action that has been paused as a result of Breathing Space may resume, which is why you need to have a plan in place by then with your adviser.

If you are losing sleep worrying about debt and think this scheme may give you the time you need to look at your debt options without the pressure of creditors chasing you, contact our Adviceline on 0808 278 7954 and our advisers will book you an appointment with a Money Adviser.

If you would like to contact us for advice on any subject or an appointment at our Glossop office on the first floor of Bradbury Community House on Market Street, the number is 0808 2787 954 (freephone). Our lines are open Monday to Friday 9am to 4pm.

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