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Breathing Space scheme 'a game-changer' for people struggling with debt

Money Advice Trust welcomes final details of new Breathing Space scheme

 
The Money Advice Trust has welcomed the final details of the government’s new statutory Breathing Space scheme, published today by HM Treasury.
 
The announcement confirms that the scheme will provide people seeking debt advice with protections from interest, charges and new enforcement actions for a period of 60 days – and will cover public sector and not just private sector creditors.  Further consultation will take place on the related but separate development of Statutory Debt Repayment Plans.
 
Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:
 
“Breathing Space will provide a powerful incentive for people to seek debt advice, safe in the knowledge they will be given the time and statutory protections they need to begin to resolve their financial difficulty. 
 
“The decision to include local authorities and other public sector creditors is particularly welcome – and means this new scheme could well be a game-changer in our efforts to tackle problem debt as a society.
 
“We look forward to working with government and other partners to ensure that Breathing Space is implemented successfully, and to continue to contribute to the government’s plans for Statutory Debt Repayment Plans as these are developed further.”
 
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