In an attempt to help everyone survive the economic downturn, debt collectors have agreed to allow borrowers 30 days breathing space, to sort their finances out.

An agreement was found between the Credit service Association (CSA) which represents debt agencies and the government.

The union has been written into the code of conduct of the CSA’s 300 members, to which the promise means collectors will not contact debtors to pursue debts for 30 days. This period can also be extended for another 30 days.

Kurt Obermaier, executive director of the CSA, said he hoped the new step would help result in more favourable outcomes for lenders: “We have an agreement to allow a 30-day breathing space in the hope and expectation that this will ease the pressure on the debtor and more likely result in a positive outcome for all,” he said.

Consumer minister Gareth Thomas said: “This new 30-day rule will give people a breathing space to help them take control of their finances as well as encourage them to seek help from debt advisers.”

Mr Thomas concluded that the reform will provide debt relief for debt-swamped borrowers on low incomes to file for bankruptcy: “We want anyone in difficulty to be able to access the help they need.”