A MAJOR bank has announced new measures to help hard-up customers who are struggling with debt.
Natwest will be extending the repayment period for customers who have missed several payments on an unsecured debt, such as a loan or overdraft.
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From February, the period that people have to repay their debt will increase from 18 to 24 months.
NatWest’s boss Dame Alison Rose said the extension will give customers in financial difficulty “breathing space”.
The Sun has contacted to NatWest to find out if customers will need to apply for the extension, or if it will be automatic.
It comes as the bank said it had noticed “behavioural changes” among customers looking to cut back as the cost of living soars.
And Natwest isn’t the only bank offering customers a buffer again rising prices.
HSBC and First Direct are already offering some customers interest-free extensions on their overdrafts.
First Direct customers on its 1st Account current account can get an overdraft of up to £500 without paying an interest.
Before, customers could only get the first £250 of their overdraft interest-free.
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Customers will only be eligible if they already have an arranged overdraft over £250.
The temporary support is available for 12 months after which overdrafts will go back to standard interest charges.
Meanwhile, HSBC offering thousands of customers the opportunity to extend their interest-free overdraft limit from £25 to £500.
The borrowing will be available to use for a 12-month period from the date of extension.
Customers can apply for the extension online even if they don’t have mobile banking.
You can find out more about who is eligible by visiting the HSBC website.
But if you’re finding that you are struggling with debt, there is support out there to help you get your head above water.
If you don’t know where to go for debt advice, then check out the charities below.
Citizens Advice
Citizens Advice is a national organisation with more than 20,000 volunteers who can help with everything from finding out what benefits you’re entitled to, to claiming compensation for a cancelled flight.
You can find your nearest branch using the tool on its website, or you can contact them by phone on 0800 133 8848.
Its online chat tool is also available from 8am to 7pm Monday to Friday.
StepChange
StepChange is another free advice service offering support and guidance to help you take control of your money.
You can do it online or over the phone, and it’s completely confidential.
You’ll need to provide details of your debts, income and household spending to get a clear picture of where your money goes.
National Debtline
National Debtline is a charity offering free and confidential advice to people in England, Wales and Scotland.
You can contact it online or over the phone on 0808 808 4000, between 9am and 8pm Monday to Friday, and 9.30am to 1pm on Saturdays.
An adviser will ask you about your income and spending, so try and have as much information to hand as possible when you call.
Other financial help available
Hard-up households can also get help towards energy bills.
If you’re worried about paying energy bills for the Christmas period, we round what help is available.
Energy bill discount – worth £400
Millions of households started receiving a £400 energy bill discount from October 1.
The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.
Households will have already received a £66 energy bill discount in October, November and December too.
Warm Home Discount – worth £150
Millions of households will get a £150 discount on their energy bills between December and March 2023.
You’ll be eligible for the automatic discount if you received any of the following benefits up to August 21 this year:
Cost of living payment – worth £650
Millions of households have been paid the first part of their £650 cost of living payment.
The payments aim to help hard-up households to help them with spiralling bills and essentials.
And those on the following benefits are eligible for the second payment worth £324:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
- Universal Credit
Most people will have already received the second payment which began going out in November.
Pensioner Cost of Living Payment – worth £300
In November, a £300 one-off “Pensioner Cost of Living Payment” was paid out to eight million households.
It was given to those who already get the Winter Fuel Payment, worth between £100 and £300 for those over state pension age.
To qualify for the Winter Fuel Payment and Pensioner Cost of Living Payment, the following must apply:
- You were born on or before 25 September 1956
- You lived in the UK for at least one day during the week of 19 to 25 September 2022 – this is called the “qualifying week”.
Household support fund – worth £180
Local councils are giving out cash to help households struggling with bills and other essential costs.
How much you can get depends on where you live and in many areas.
To qualify you’ll usually need to be a recipient of council tax support.
For example, thousands of households in one area will get £180 in free cash before Christmas.
You can search for your council using the search tool on gov.uk – just enter your postcode.
Local councils also offer welfare assistance schemes all year round that can help you with bills.
Cold weather payments – £25 a week
Low-income households can get a £25 payment when temperatures plummet.
These cold weather payments have already been made in several locations where residents have experienced below-zero weather.
The payment is made automatically, including to those on Universal Credit, for each seven-day period of low temperatures between November 1 and March 31.
More than 280 postcodes have already got double cold weather payments due to freezing temperatures.
Energy grants – up to £1,500
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has confirmed it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
And the British Gas Energy Trust pays hard-up households up to £1,500 – and it doesn’t matter if they’re not a British Gas customer.
For more info on what each supplier is offering and how to apply, we’ve written it all down here.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
