Credit holidays – a moment to catch your breath

Posted: August 15th, 2013 | Author: | Money

Housing loans is quite a heavy burden on the household budget. Even the best thought-out cannot withstand a collision with reality and prove to be too little resistant to emergency situations such as job loss, sudden expenses, etc. Sometimes we need to take a deep breath and the banks seem well aware of this.

EXLINKEVENTS - Event Management

EXLINKEVENTS – Event Management

Therefore, in most banks there is available such thing as a vacation credit. It’s hard to describe a uniform formula for such a service, because the conditions in each bank are a bit different, but generally the idea is that the payment of one or more instalments shall be postponed during the whole or a part (usually the principal of bonds shall be possible to delay, and the interest not). Then the repayment period is extended by a period of vacation or unpaid loan amount shall be distributed among the remaining installments.

The opportunity to take vacation credit is regulated differently, some banks allow you to take the vacation time throughout the repayment period, the other two times, and some once every few years. Before taking such loan holidays should find out how much it will cost us and how much you will save thanks to this, it may turn out that savings will be small, and the final cost will be high. In an emergency, we can also consider the refinancing of the loan, which also can reduce the monthly payment and lead to cost savings, but this is a solution available in a smaller number of cases than credit vacation.

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