Many people are facing financial difficulties due to COVID-19. So, payday lenders have actively marketed payday loans to vulnerable people, by providing them short-term loans for sailing through during the coronavirus pandemic.
Many people were really concerned about their credit card dues and also not in a position to manage their finance well. Therefore, in order to pay credit card dues, mortgage arears and many other kind of debts people mostly relied on payday loans.
If you too have taken payday loan, then government had announced payment holiday due to coronavirus and now that period has also come an end. Therefore, it is time to get on the right side of the options that is available to you, particularly if you have suffered a drop in your income.
Loan Pig too has offered payday loan to many people at much easier terms and you can learn more about LoanPig Company, by visiting their website and read the section about us by clicking on their page. By applying for any kind of short term loans from Loan Pig, you can get lots of benefits that you may not find anywhere else.
What was payday loan holiday?
Till the date 31st October 2020, it is possible to apply to your lender who has offered you payday loan for one-month freeze in your repayments, which is known as payment holiday. Besides not making any repayments, following few things must have happened while the payment holiday was in force:
- No additional charges or interest will be applicable.
- In case your lender earlier refused to help in the past, now it will be worth asking again
- If you have already missed your payments before you took a payment holiday, all these charges may still apply.
So, you need not worry about it when payment is under freeze. All these will be further added to your loan payment plan and also it will be subject of Total Cost Cap.
Availing payment holiday will not have any impact on your personal credit report, however missing future payments may impact. You must remember that your present credit report will not be the only thing that your future lenders may use to decide whether they should lend to you.
However, in case you have not asked your payday lender to get payment holiday, then your agreement will continue as normal.
What can happen as holiday for payday loan payment expires?
Your repayments will again start automatically as soon as payment holiday period ends, but the lender also must also have already contacted you during this period of payment holiday, in order to confirm whether you can afford all your repayments.
The entire payments that you have missed will then be added in your balance. Thus, your amount that you repay may go up when the payment holiday will end to cover your missed payments.
In case, you have availed payment holiday for payday loan due to coronavirus, then it is likely to end very soon.