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A moratorium can give you time whilst you try to improve your situation.

If your creditors agree, they should suspend any recovery action and stop any interest and charges from being added, provided you ask for this.

A moratorium is flexible in that you can ask for as long as you need to sort out the situation. 

A moratorium is usually a good option if you are experiencing a short term difficulty and you know your circumstances will improve.

A moratorium is not legally binding, and there’s no guarantee that the creditors will agree to the request.

Your creditors will normally ask you to review every 6-12 months, or if your situation changes.

Any time you pay less than the contractual amount, your creditors can update your credit file with this information.

If you are not making payments, then they may register a default on your credit file, and take county court action against you.

These will be recorded on your credit file for up to 6 years, and may make it more difficult to get credit in the future.

You won’t be able to keep using the credit account if your creditor agrees to a moratorium.

If you are in an overdraft with your bank account, your bank may remove your overdraft facility, or close your account.