Money Saving Expert Martin Lewis has issued some important advice to all credit card users considering payment holidays.
The consumer journalist has said that card and loan payment holidays could be extended for anybody who is struggling, but people should think carefully before applying for one.
He told readers of his weekly newsletter: "On Friday, regulator the Financial Conduct Authority (FCA) published proposals which included extending card and loan payment holidays for those struggling due to the pandemic.
"It's a lightning-quick consultation, almost certain to be rubber-stamped and in place by July."
The money journalist says that the new plan proposes if you've not yet applied, you can do so until October 21, and if you are already on a pay holiday, you can ask to extend it for a further three months.
Partial pay holidays are allowed if you can repay some but not all of it.
However, Martin warns not to opt for a payment holiday unless you need one, reports Birmingham Live.
"My view is IF YOU NEED A PAYMENT HOLIDAY, DO IT, BUT ONLY IF NEEDED," he says.
"The reason it's not a 'grab it' is two-fold.
"First, because the holiday is just a deferment, you still have to pay what's missed, and the interest that's racked up, later.
"Plus, while it won't go on your credit file, as I revealed a month ago, payment holidays can affect credit scores as lenders use other methods to detect them.
"But if you're struggling to repay, and need cash flow, do it. Better that than killing your finances."
