Citizens Advice: Households face cliff-edge when payment holidays cease
Following the news that 700,000 people have taken up payment holidays on credit cards, and nearly half a million have been approved for personal loans, Citizens Advice has warned that there will be a shock for households when government help is no longer available.
The network has also said that government should consider what other support should be put in place to ease financial strain for households.
Dame Gillian Guy, chief executive of Citizens Advice, said: “The payment holidays provided by lenders have helped soften the financial shock of the coronavirus lockdown for hundreds of thousands of people.
“However, there’ll be many households needing further help, and more time, to get their finances in order.
“Renters and council tax payers who are falling behind on payments face a cliff edge when a temporary pause on payment enforcement comes to an end.
“The government needs to take action to make sure people don’t face eviction or harsh debt collection for falling behind on bills due to coronavirus.“