Do you want to take a break from monthly installment repayment? In this case, a payday loan will be an excellent choice, thanks to which we can suspend the repayment of the instalment for one month or several months. How to use such a solution and when will it be a good choice?
The term ” payday loan ” refers to the possibility of omitting, or more precisely, postponing the repayment of one or several loans or loan instalments. Therefore, we have to point out at the beginning that loan holidays do not allow to avoid repayment of the liability, but only to suspend it for a certain period of time. We simply pay the instalment on a different date.
Loans are very helpful when there are additional expenses. Then we can treat them as a special emergency exit, to avoid problems with repayment of the instalment. Remember, however, that this instalment is not lost and we will have to give it up in the near future. This means that loan holidays can also be a problem for us when we will have two instalments at the same time.
Who offers payday loans?
At present, payday loans are a fairly common service offered both under loans granted for any purpose and loans, for example, mortgage loans. We can use them not only at banks but now also at non-bank loan companies that give their clients such an option.
The conditions under which we can take advantage of payday loans under a loan or loan are determined individually by the bank. Therefore, in each institution, they will be slightly different. Most often, we have the option of suspending the repayment of one installment – once a year. However, it may happen that loan holidays will only be available once every few years. In addition, there is often a limit to the maximum total number of interruptions, for example, three times for the entire contract.
How to take advantage of payday loans?
We will learn from the concluded loan or loan agreement whether and on what terms we can take advantage of loan holidays. We should always inform the institution about 2 weeks in advance that we want to use such an option. Often, we also have to submit an appropriate application at a bank branch or from the level of our online banking account.
It is worth pointing out that a bank or other institution may refuse to grant loan holidays. This is most often the case when the client did not pay the remaining liabilities dutifully.
What should we pay attention to when we want to choose payday loans?
As we have already mentioned, the exact rules for loan holidays can be found in the contract. It is worth pointing out that the bank is not always allowed to postpone the whole instalment, but only its capital part – then we will have to pay interest anyway. Also, it is worth paying attention to when exactly we will have to settle the obligation, as well as the consequences resulting from such repayment. Usually, it is added to the loan or loan balance and increases subsequent instalments or extends the repayment period. It may also happen that it will be necessary to pay two installments simultaneously.
