Debt help


A new report released by the insolvency trade body R3 has suggested that individuals who are struggling with debt repayments should be provided with a 28 day break or, ‘Breathing Space’ from creditor action in order to give them time to seek financial advice.

R3, a trade body for the insolvency profession point out that individuals under pressure from creditors, are likely to be seriously stressed and can find themselves signing up to either inappropriate funding solutions, for example guarantor loans or signing up to a debt solution which might not have been necessary, had they had more time to consult with professionals, family or friends.

This is not the first time that the concept of Guaranteed Breathing Space has been suggested. Debt charity, Step Change has been campaigning for debtors to be given 12 months’ breathing space for some time. Bev Budsworth, MD of The Debt Advisor comments, “Asking for 28 days is much more sensible than 12 months and is much more likely to be accepted by creditors.  There is also evidence that the implementation of such schemes have worked in Australia, Canada and Scotland. I very much welcome consultation with the creditor community on these proposals to make sure they are workable and are not abused”.

The R3 proposal in summary provides that during the 28 day period of “Breathing Space”, the individual would be required to seek advice and explore the solutions that are available to them. In return, creditors would not take action during this time; repayments would not be expected and interest and charges would be frozen.

The proposal also provides:-

  • Creditors would have to inform indebted individuals of the availability of the Breathing Space before being advising them to enter a debt solution or before a bankruptcy order could be made against them.
  • If the individual chooses to take advantage of the Breathing Space, it would be recorded on a central register and their creditors would be notified.
  • Individuals would be able to use Breathing Space a maximum of once per year.
  • Creditors would be able to challenge the use of Breathing Space by a customer if there was reason to believe it was being used as a delay tactic to avoid repaying their debts.

Phillip Sykes, President of R3, says: “Alleviating problem debt is a major policy challenge. Although there are effective insolvency options for dealing with debts, the difficulty is making sure people can access a debt solution appropriate for their needs.

“People need time, without pressure from creditors, to seek professional advice on what the most appropriate course of action is. If someone can make a considered decision, that increases the chances of a better deal for the debtor and, often, a better deal for creditors.

“There needs to be a balance between the indebted individual, who should be allowed to rehabilitate themselves financially as quickly as possible, and creditors, who should receive the best repayment outcome possible in the circumstances.

“The Breathing Space is intended to facilitate getting the right advice and entering a suitable debt solution; it is not a tool for avoiding repaying debts. It should be seen as a last resort for those who have already received numerous notices of debt collection and enforcement, providing a final opportunity to tackle financial difficulties.”

Phillip Sykes adds: “While the UK has one of the best insolvency regimes according to the World Bank, there is always room for improvement. Personal debt in England and Wales has changed dramatically in its scale and nature, with insolvency numbers trebling in the past decade, so it is necessary for the insolvency regime to change with it.”

If you would like to speak with somebody about the various debt solutions that are available to you, speak with us today.

Our advisors will chat to you in confidence about your circumstances and they can give you ideas about appropriate ways to resolve your debts. These solutions could include Debt consolidation,  as Debt Management Plans, Individual Voluntary Arrangements, Debt Relief Orders, Bankruptcy and solutions for Business Debts.

The Debt Advisor Ltd is regulated by the Financial Conduct Authority and the Debt Resolution Forum and we adhere to their strict codes and standards.

Call today on our freephone number 0800 085 1825 or alternatively you can use our contact form to request a callback.


Do you need help?

Specialist advisors are available who can advise you on the most appropiate solution to bring you relief from debt

More Posts From The Debt Advisor

Beverley Budsworth – The Debt Advisor FCA regulated Debt Solution Provider Judgments increasing against consumers Judgments in first quarter of...
Debt Relief Order changes – more people will qualify
The criteria to qualify for a Debt Relief Order “DRO” changes on 29 June 2021.  This will mean that around...
Mental Health – How to help yourself recover “Post Pandemic”
Mental Health - How to help yourself recover “Post Pandemic” PPSD* (post-pandemic stress disorder) Not (yet) an official term but...
Breathing Space debt respite scheme
What is Breathing Space? From May 4th 2021 new legislation will be brought into place to allow approved debt advisers...
How to improve my Credit Score?
Within the UK there are 3 main credit reference agencies, TransUnion, Equifax and Experian. All 3 work with banks, building...

We are proud of our 5* TrustPilot customer reviews

We are proud of our 5* TrustPilot customer reviews

The Debt Advisor Accreditations

There is an alternative free-to-consumer debt services from the Money Helper.

The Debt Advisor Accreditations

There are alternative free-to-consumer debt services from the Money Helper.

We’re ready to help with any debt problems

Social media

The Debt Advisor has a long and rich history of helping people and companies get past their debt problems. We welcome people to get acquainted with our company, history, team and to listen to the stories from the people we have helped.

Alternative free-to-consumer debt services are available from the Money Helper website.

Customer Support

18-22 Lloyd Street, Manchester, M2 5WA

Monday to Thursday: 9:00 am – 7:30 pm
Friday: 9:00 am – 3:30 pm

Company Registration: 06248441 | The Debt Advisor Limited is Authorised and regulated by the Financial Conduct Authority Reg No: 659920.

All debt solutions should be very carefully considered. Please note, if you are struggling with debt issues and need advice on your options, we’ll take a look at your financial situation and explain the available options. If it is appropriate to refer you to one of our trusted providers for a solution, we may get a fee for introducing you, or for the preparatory work we complete. Fees are payable if ongoing services are provided.

Copyright © 2022  The Debt Advisor | Privacy Policy | Cookie Policy | Complaints | Careers