With a payment holiday, you don’t need to pay anything to your creditors. However, interest and charges may continue to be added and you’ll need to make up the missed payments in the future. Payment holidays are agreed between you and your lender, so you can’t take a payment holiday if they won’t agree to one.
Breathing Space doesn’t stop your payments from becoming due, so you’ll still need to make them, but interest and charges will be frozen and your creditors won’t be allowed to demand repayments. You apply for Breathing Space via a debt advisor, who will register your details with the Insolvency Service. Your creditors must comply with Breathing Space.