The Financial Conduct Authority – which directs payments – said the latest extension announced in January would not continue when it expires on March 31.

The payment holidays have thrown a lifeline for struggling families throughout the pandemic – offering breaks from auto financing, credit cards and mortgages amid enormous uncertainty.

The support, which gives people a break from their essential bills, is valid for up to six months, but the deadline to request a deferral is now looming.

The Financial Conduct Authority – which directs payments – said the latest extension announced in January will not be extended when it expires on March 31.

After this point, it will be at the discretion of banks, building societies and lenders – and any deferrals granted will be marked on the bill payer’s credit score.

The final cut means those who continue to be financially affected by Covid-19 have until March 31, 2021 to request a payment break of up to three months.

Payment holidays can last up to a maximum of six months.

So even if a homeowner has already had a mortgage payment holiday, they can benefit from an additional deferral, up to a maximum of six months.

To request a break, you will need to speak to your loan provider who will assess your options.

If the green light is given, your payments will be suspended, but interest payments will continue to accumulate, which means that your future repayments could increase further. To avoid this, you can consider overpaying once you are on top of your finances again.

All payment holidays – whether or not you have time overdue – will end on July 31, 2021.

“This is your last chance to request payment holiday,” consumer expert Martin Lewis told BBC Radio 5 Live listeners today.

“If there is a chance that you will need the help in two months, apply now,” he said.

“These payment holidays will not be recorded on the credit file, but interest will continue to accrue.”

Financial industry trade association UK Finance said 2.75million deferrals had been granted until the end of 2020, with a peak of 1.8million in place in June 2020.

At the end of February 2021, just over 100,000 mortgage payment deferrals were still in place.

Charles Roe, Director of Mortgages at UK Finance, said: “The current mortgage deferral program will end on July 31 and final applications are expected to be filed by March 31.

“It will always be in the long-term interest of borrowers to resume their payments if they are able to do so, but for anyone who is still struggling financially, ongoing support will be available.

“Customers who have already received a full six-month deferral of payment, but continue to experience financial difficulty, should contact their lender as soon as possible to discuss the ongoing support options available. “

Mortgage payments

If you’re struggling to keep up with your mortgage payments on your home and haven’t requested a six-month mortgage break yet, you can do so until March 31.

The break will remain in place until July 31.

Credit card bills

Distressed credit card and personal loan customers have eight days to request payment leave.

But you will not be able to request leave if you have already had a payment interruption of more than six months.

You have until the end of the month to make your request and the payment holiday will end on July 31.

Expensive short-term credit leaves

Payment holidays on high-cost, short-term credit debt, such as payday lenders, are capped at one month.

You have until March 31 to apply and it will end after 30 days – or end of July.

If you have already taken a payment holiday, you cannot request another.

Buy now, pay later

Consumers have until the end of the month to freeze Buy Now, Pay Later refunds registered with companies such as Klarna, Clearpay, and Paypal.

These programs allow customers to pay for their purchases in monthly interest-free installments.

But if you’ve already taken a payment holiday, you won’t be able to request another.

Your payment holiday will end on July 31.

Refunds will automatically resume after this date and any payments you missed will be added to your balance.

Auto finance vacations

Auto finance agreements eligible for deferral of payment include:

• Rental contracts
• Personal contract plans
• Personal rental contracts
• Conditional sales contracts
• Credit agreements for the purchase of a vehicle such as a credit sale

If you have already taken a payment holiday, you cannot request another.

You have until March 31 to request a payment holiday, which will end on July 31.

Pawnshop vacation

You can take a pawnshop payment holiday if your finances have been impacted by the Covid.

This means that you will have more time to collect the item that you have pledged – in other words, the pawnshop will have to suspend the sale under the payment holiday.

If you are nearing the end of your payment holiday and you are still having difficulty, ask the company or lender what help is available.

They must provide tailor-made support tailored to your personal situation.