Loan repayment holiday

becdoyle73

Advice please...
I’m a self-employed special needs teacher so have just lost most of my income now that the schools are closed due to Covid-19. I’ve just phoned M&S bank to ask for a payment holiday on a loan but all they would do is put a “hold” on my account for 60 days. If I don’t make the payments it will still affect my credit rating but they won’t pursue the debt for 60 days. This doesn’t seem very helpful at all. What should I do?

mwarby

A repayment holiday will affect your credit history regardless (as repayments are reported), the effect on your rating depends on who's looking and for what reason (the actual score isn't that important as most banks calculate their own score, based on the raw data). A 60 day hold is better than nothing, and you may find that if your situation hasn't improved by then additional help will be offered