Taking a loan for many long years, we can not predict what will happen in our lives during the repayment period. There are various random situations in which a person who repays a long-term loan loses his job or is seriously ill and is unable or unable to pay back the loan installments. It also happens that there is a moment in life that we just want to take a break from paying such installments, and we want to spend the money on another purpose or just want to repair our home budget.
Due to such situations, many banks offer so-called credit holidays or deferred liabilities. It is a great solution for people who are already frustrated with paying back installments, in particular that a large part of them are interest, which is known to be the bank’s remuneration for the money borrowed to us.
If we are in a difficult financial situation, e.g. as a result of losing a job, we can go to an agreement with the bank and apply for a break in paying the installments. Banks often agree to such requests. Of course, if they are duly justified.
Banks are not interested in oppressing their clients, as many people think. The bank gladly goes hand in hand, because by deciding to pause in repayment of the loan we express a desire to continue repayment after they expire. This is a convenient solution for the borrower, because if he did not agree to such a vacation, he would have to take into account the fact that the borrower will stop paying installments, which would entail further unpleasant steps, such as bringing a case to court or enforcing the outstanding amount by a bailiff . And this, however, is associated with costs and time. Credit holidays usually last for a year, and if the customer stops paying off the loan, the waiting time for a refund would be significantly longer. And as you know – time is money!