Credit card payment holidays

During a payment holiday, your credit card provider allows you to stop paying for a short time. 

This can be useful if you've experienced an unexpected event like losing your job or falling ill.

During a payment holiday:

• you won’t need to make your usual monthly payments
• you’ll probably still be charged interest, meaning the amount you owe will increase
• your credit limit might be reduced or frozen 
• the payment holiday may be reported to credit reference agencies, possibly affecting your credit score.

A payment holiday can last anywhere from a few months to a year. Make sure you’re clear about how long it will last when you’re agreeing the details with your provider.

To arrange a payment holiday:

• contact your credit card provider
• explain your situation and ask about their payment holiday options
• share any supporting documents, like proof of job loss or medical expenses
• if approved, check the details, including how long it lasts and any fees or interest charges

Payment holidays will be considered on a case-by-case basis, and not all providers offer them.

Once your holiday is over, you’ll need to start making regular payments again. Remember:

• Your monthly payments might be higher as a result of added interest.
• Where possible, it’s best to catch up on payments quickly to protect your credit score and keep debt from piling up.
• If you’re still struggling, talk to your provider about other repayment options, like lower monthly payments.
• And if your credit card provider can’t help, it may be time to get debt advice.