Martin Lewis urged ITV viewers to take mortgage holidays, if they needed to take any payment holiday at all. One Twitter user said: “I am being paid 80 percent, is it best to take payment holidays or try and meet all bills.”
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Martin said: “Remember, payment holidays – with the exception of payday loans – are just that, the interest still racks up so you always want to avoid a payment holiday unless you have to.”
He went on: “If I were to put it in a spectrum of what’s worse and what’s best, I think the least worst is a mortgage payment holiday because mortgages are so long term, missing a few months worth of payments will increase your payment a slight amount but not very much and the interest rates are quite low.
“And that’s such a large amount if you need the cash flow I would always start with a mortgage payment holiday.
“All the others, the credit card, the car finance, interest rates are much higher. You really want to avoid those unless its an emergency.
“So, don’t do it unless you have to and if you want to do one, I’d start with the mortgage payment holiday.”
Martin Lewis also discussed car payment holidays.
He told one Twitter user: “Last Friday we got an announcement there would be consultation on car finance.
“The results of that will be announced tomorrow and will be in place next week.”
These are three month payment holidays, and apply to car finance, including PCP, lease and HP. It also applies to pawnbroking, buy-now-pay-later and rent to town.
However, Martin warned: “The interest rate is quite high so only do it if it’s an emergency.”
He went on: “These rules are only going to come in after they’re announced tomorrow, some time next week.”
Speaking to those how have attempted a deal or holiday on their car payments, Martin said: “If they don’t give you a good enough deal go back after the regulations are announced.”
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