Banks Urged To Stop Debt Interest
Having recently scrapped billions of pounds of dividends to shareholders, banks are being urged to put their extra money to good use by stopping interest payment on all outstanding debt during this difficult time.
Following strong pressure from banking regulator the Prudential Regulation Authority (PRA), NatWest, Santander, the Royal Bank of Scotland, Nationwide, Lloyds, HSBC and Barclays all cancelled payouts to shareholders until the end of the year. This means that there is now an extra £7.5 BILLION in the banking system, allowing them to grant debt relief to struggling households.
The additional cash would “go a long way” to providing debt relief to people unable to make interest payments over the next three to six months, said Kevin Doran, chief investment officer at AJ Bell.
“Now would be the ideal time to repay the British public for the bailout the banks received during the financial crisis by writing of debt repayments for a period of time for those most affected by the Covid-19 crisis.”
This would be a massive help to millions, however it is far from a certainty at this point, and even with interest frozen, you’re still in debt, and banks are just one creditor!
If you are struggling to repay your debts, please don’t hesitate to contact our friendly advisers. There is no fee for our advice, and there is no obligation to accept any help we may suggest.
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