Depending on your circumstances, a formal Breathing Space can be a very useful tool to help you find a way forward with your debts – as long as you access it at the right time for you. That’s why you have to talk to a qualified debt adviser if you want to apply for the scheme. If someone approaches you directly about Breathing Space or offers to arrange it for you for a fee, it’s likely to be a scam. If one of your creditors suggests you should use Breathing Space, contact us for impartial advice to make sure you understand all your options for dealing with your debt before you make any decisions.
A formal Breathing Space is a government scheme. It lasts for 60 days and gives you temporary protection against most types of debt collection. It is designed to give you time to seek debt advice and find the right long-term solution for you. During the 60 days, the organisations included in the Breathing Space cannot contact you about the debt, add interest and charges to your debt or take action to make you pay. This includes pausing most court action for debt and visits from bailiffs. Bear in mind however that it may not prevent an eviction for rent arrears if the court thinks the arrears are unlikely to be paid.
If you meet the eligibility criteria, you’ll still have to make certain types of payments. This includes any ongoing costs you are liable for, such as housing costs, utility bills, and taxes. Any debt payments that you have set up already, such as direct debits, will not be stopped unless you choose to stop them yourself. Deductions from benefits will continue and any attachment of earnings that have already been applied for.
You can only make one Breathing Space application a year, so it’s important to access it at the right time. Before you consider applying, the first step is to work out your budget. This will help you to figure out how much you can afford to pay towards each debt after you’ve paid for essentials. Remember to make a plan for any priority debts like Council Tax or rent arrears first, as these have more serious consequences if you don’t pay. Once you’ve done this, contact your creditors to explain your situation – they might be able to agree on affordable repayments. If you’re finding this process difficult, we can help. We may also be able to suggest ways to increase your income or reduce your outgoings.
If you’re not in a position to make any repayments, your creditors may be able to offer a temporary hold on debt collection, usually lasting for 30 days before being reviewed. They may refer to this as a ‘breathing space’. Beware – this is not the same as a formal Breathing Space as these must be processed by a qualified debt adviser.
If you’re struggling with your debts, contact us to discuss your situation and find out what your options are. We can explore if you’re eligible for Breathing Space and make the application for you if you are. We can also advise you on the different debt solutions available for you to help you find a way forward. Don’t forget, it’s important to actively engage with your debt adviser during your Breathing Space to find a longer-term debt solution that works for you.
Finally, remember that if you are finding it difficult to keep on top of bills, you’re not alone. We’re here to provide non-judgmental debt advice you can trust, help you explore ways to boost your household income and reduce your spend on essentials.