What you should do when your coronavirus payment holiday has ended

What you should do when your coronavirus payment holiday has ended

When the coronavirus out-break started, if you took a credit card or other payment holiday and it’s ended now, you should understand what happens next, and what options are available to you. at 1Plus1 guarantor loans we are here to help you.

When your payment holiday is over, what happens then?

It’s important to know what date your repayments will start again because repayments will automatically start again once your payment holiday has ended.

Interest payments that have built up over the period will be added to your outstanding balance, so your monthly minimum payments on your credit card will go up.

Your credit card provider or lender will tell you how much in your first statement after your payment holiday ends.

If you can afford to make your payments again, there is nothing you need to do as they will restart automatically.

More about what to do when your payment holiday ends.

What other options may be available?

Your lender may change your payment due date If it will benefit you. For example, to just after you get paid.

Your provider may reduce interest rates on your credit card, making your repayments more manageable, and reducing the rate at which your outstanding balance is increasing.

Each month you will still need to be able to pay off at least the minimum amount.

If your finances have been badly affected by the coronavirus outbreak look at a repayment plan. There are a combination of options to help manage your repayments.

You Could Reduce Your Monthly Payments with a Debt Consolidation Loan

If you have more than one credit account, you may find managing the various payment dates worrying. Additionally, there could be interest rates attached to each one too. By consolidating them into one payment, with a debt consolidation loan from 1Plus1 guarantor loans, you could potentially reduce the number and amount, of monthly repayments you are making.

A debt consolidation loan may be a choice that could really help if you are managing numerous loan repayments, giving you the opportunity to bring together your existing payments into a single monthly payment and with it, one single interest rate. You might find that making one repayment on one date each month makes it easier to manage your money and you may be eligible for a consolidation loan with a responsible lender such as 1Plus1 Guarantor Loans, even if you have a poor credit history. It can also help rebuild your credit rating.

Taking out a debt consolidation loan could reduce your total monthly repayments into one single smaller payment. BUT, in some circumstances, you might be repaying your loans over a longer period.

You will not need to use your house, or other asset as security, because a guarantor loan with 1Plus1 Loans is a trust-based agreement, where a guarantor supports your application. They will need to agree to meet the payments in the event you cannot.

All loans are subject to meeting credit worthiness and affordability criteria

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.