COVID Payment Plan
A new solution if you’re struggling financially due to COVID-19.
COVID-19 / Coronavirus has had a massive impact, and for various reasons we know a large number of people are struggling with their finances or mounting debts as a result. The good news is that there is a new solution that has recently been launched; something called the COVID Payment Plan (or CVPP for short.). This has come about due to the fantastic work of the debt relief charity StepChange, who we at FD Debt Solutions work closely with.
Can this help me?
It probably can if your income has been reduced as a result of COVID-19 / Coronavirus, for example if you’ve:
- lost your job,
- had a salary reduction or
- are bringing home less money than you used to.
There are some other criteria you will have to meet, but the CVPP has been specifically designed for people who were managing alright before COVID, but who are now in need of some help to see them through the next 12 months.
How does it work?
The CVPP offers you some breathing space. It enables you to gather together the money you owe (bills, Credit Card payments, car leases, loans etc.), and lets you pay reduced regularly payments for however long your income is reduced (up to a maximum of 12 months). So instead of you having to juggle or prioritise some debts over others, you’ll instead just have one payment each month set at a level you can afford.
The CVPP is an alternative to formal insolvency, and yet those you do owe money to will still be informed officially. This means not only will they stop chasing you for payment, but they’ll also stop charging you interest or other late-payment fees for the duration of the CVPP as well.
What are the benefits?
- Reduced stress and worry; you’ll no longer need to juggle different debts and payments.
- Easier budgeting; only one payment each month to plan for.
- Short-term; if your finances improve during the period you can increase payments or settle your debts, and you will exit the agreement.
- Lower overall costs; frozen interest and charges from your creditors for the 12 month period.
There must be a catch?
Not really, but there are things you should be aware of. Firstly you will need to meet specific criteria, and entering a CVPP may affect your credit rating. But if you are struggling during this time, we do think it’s something you should explore as it has been specifically designed to give people some breathing space to manage their finances through this pandemic.
Find out more & get in touch.
The first step towards the end of debt worries is to speak to someone, and at FD Debt Solutions we have a team of experts on-hand to understand your situation and provide you with the best advice. They will then be able to help you choose the best solution for your situation, and assist you moving towards a CVPP if that’s what’s best.
Give them a call today on 0800 652 0002, or you can request a call back by giving us some details on the right of this page or by clicking here.
We know how difficult managing finances can be, but we are Scotland’s premier debt advice company and our team are friendly and can help. Get in touch today.
Please note: Terms & Conditions apply to a CVPP, certain criteria must be met, not everyone will be eligible and not all debts can be included. Entering a CVPP may affect your credit rating. For full details on this and discuss eligibility contact us on 0800 652 0002.