Millions of people who are struggling to keep up with debt repayments due to the pandemic will be able to extend their payment holidays until October 31, the financial regulator had announced.
Customers unable to pay credit card, store card and personal loan bills will be able to request an extension from July 3 as the current 90-day break comes to an end.
Under the extension, firms will have to give customers longer to pay off their £500 interest-free overdrafts if they have been left financially vulnerable due to the virus.
Anyone who has been newly affected by the pandemic, such as though redundancy or a salary cut, will also be able to apply for help - including an interest-free £500 overdraft - for another three months.
Trade body UK Finance said 1.2million people have so far been granted a payment holiday on their credit cards and loans.
Christopher Woolard, chief executive at the FCA, said: "Since the coronavirus crisis began, we have made support available for those borrowers financially affected by the pandemic. For those who are now in a position to restart payments, it will be in their best interests to do so. But for those who still need it, the package we are confirming today ensures there is help and further support."
The FCA said customers who are able to should return to their regular payments as soon as possible.
It said lenders will contact customers in due course to discuss a repayment plan - and will extend the scheme where necessary.
This could include freezing or reducing payments on credit cards and personal loans to a level that the customer can afford for three months.
Customers who are negatively impacted by coronavirus and who already have an arranged overdraft on their main personal current account will also be able to extend their £500 interest-free overdraft for a further three months.
Banks will also be able to lower the cost of borrowing above the interest-free buffer, where the customer is severely struggling.
Any payment freezes or partial payment freezes will not affect your credit score.
The payment break will not apply to other consumer credit products, such as motor finance, high-cost short-term credit, rent-to-own, pawnbroking and buy-now pay-later, though the FCA said new guidance will be provided on these soon.
