Credit card and loan borrowers can freeze repayments for three more months, but regulator says they should pay a reduced amount if possible
Hard-up credit card and personal loan borrowers will be able to put their repayments on ice for another three months, the Financial Conduct Authority has confirmed.
However, the city watchdog said that those who could afford to make reduced payments should do so.
Borrowers who have yet to take a payment freeze, along with those who had not yet applied for a £500 interest-free overdraft with their bank, have until the end of October to ask for one.
The announcement is in line with moves made to extend mortgage holidays for another three months, announced at the end of May.
The FCA previously brought in the rules for overdraft, credit card and personal loan borrowers in April, with three-month payment holidays taken by more than 1.65million people by the end of last month.
There was reportedly debate over providing another blanket three-month payment holiday to unsecured borrowers hit hard by the coronavirus crisis, due to the cost of rolling up interest, especially on credit cards.