Payment holiday
Debt, arrears & collectionsA temporary pause in repayments agreed with a lender.
Overview
Payment holidays can provide short-term relief, but interest may still accrue.
They are not the same as missed payments, but they can be recorded.
Why it matters
- It can help in short-term hardship.
- It can increase total interest paid.
- It may still show on your credit file.
FAQs
Does a payment holiday harm my credit score?
It depends on how it is reported and the lender policy.
Do I still pay interest during a holiday?
Often yes, which can increase the total cost of borrowing.
Related terms
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