Helping people get out of debt

Free government scheme can sort your finances

If you’re struggling to cope with your debt, get some Breathing Space.

Rising mortgage costs, increased energy and fuel bills, higher national insurance and record inflation mean many of us are feeling the pinch.

But if your debts have become overwhelming and you don’t know where to turn, help is at hand.

The government launched an initiative called Breathing Space about a year ago, but few people talk about it.

The scheme has been designed to allow people struggling with debt to take a breather.

What is the Breathing Space scheme?

There are two types – Standard Breathing Space and Mental Health Crisis Breathing Space.

You can apply for the first type through debt advice and it lasts for up to 60 days, with a review between days 25 and 35.

The latter scheme, which is specifically for people in mental health crisis treatment, needs to be applied for with an Approved Mental Health Practitioner (AMHP). It lasts for the duration of your treatment, plus 30 days.

How can it help?

Once a Breathing Space application has been successfully made, creditors are unable to add any interest, penalties or charges to your account.

They also cannot file any court orders or instruct any bailiffs for a 60-day period for Standard Breathing Space, or for the duration of your treatment plus 30 days for Mental Health Crisis Breathing Space.

That gives you a window of opportunity to make a plan and work out how you can repay your debt without the worry and stress of a bailiff visiting, or the debt getting more out of control.

When we have a problem, many of us stick our heads in the sand and hope by some miracle that it will go away – but it doesn’t, and it won’t. That’s why making an application for Breathing Space requires you to speak with a qualified debt adviser who can help you get some perspective, explain your rights and help you get your finances back on track.

A debt adviser will go through all your outstanding debts and regular bills, and work with you to create a personal debt solution.

They will make a Breathing Space application on your behalf – at no cost – based on the plan you have agreed together. All relevant creditors are informed electronically and must act immediately. They should not contact you for 60 days unless it relates to another matter or you contact them.

Speaking to a qualified debt adviser will help get your finances back on track

What can’t be included?

Any fines imposed by a court, child maintenance, student loans or council tax liability. Council tax arrears can be included, however. And while secured debts such as a mortgage cannot, any arrears on a mortgage can.

If you have enforcement action against you already, this also cannot be included.

How can I apply?

Contact the charity stepchange.org, It is well-respected and has been around for a long time.

Alternatively, visit breathing-space. uk to find out more about the scheme.

To learn more about debt repayment and other money topics, visit warrenshute.com