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A payment holiday (suspension of payments) is a temporary pause in the payment of an instalment loan. Payment holidays can be a solution for temporary financial bottlenecks, whereas for longer-term difficulties with loan repayments, a reduction of the instalment amount might be a better option (cf. the “Changing Annuity Amounts” section). Even in the case of payment holidays without any extra fee, the loan will be slightly more expensive, as interest will be charged during the payment holiday nonetheless: Interest accrued during the payment holiday will be included in the next instalment. |
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