<p>The
emergency situation declared worldwide and also in Latvia due to COVID-19 or
coronavirus in March 2020 has significantly affected our national economy in general and each
household individually. Even the economic crisis back in 2008 did not enforce
many families to plan their budgets to such detail, while idle standing of
companies causes fear of the planned income. The pre-COVID-19 pace of work has
still not returned in many companies, and it is not clear, when will the life
get back on normal track as it was before the emergency situation. Thus, income
section of many households is under a question mark, while expenses have
remained unchanged, or even increased due to the family’s common daily life.
Credit payments make major part of these expenses. In order to facilitate the
family’s financial situation, credit institutions offer credit holidays, but,
as soon as the possibly appears, credit holidays should be
terminated, explains crediting <a target="_blank"  href="https://sefinance.lv/lv/?utm_source=1188&amp;utm_medium=homepage&amp;utm_campaign=catalog">specialists of
"Sefinance</a>". Here’s some more information on this topic.</p>

<h2>At the beginning – what do the credit holidays mean?</h2>

<p>Credit
holidays allow for suspension of the principal amount of credit payment by
several months (for mortgages – for a period of up to one year), thus
facilitating burden of borrowed funds on the household budget. During this
time, the debtor is obliged to pay the interest only, and this rate remains
unchanged, whereas, repayment of the principal amount is postponed to the
moment, when financial situation of the family has stabilised and funds for
credit payments are available again.</p>

<h2>When is it beneficial to take the credit holidays?</h2>

<p>Credit
holidays offer good solution for the moments, when amount of family’s regular
income decreases, for example, in cases of temporary loss of job, as it has
happened in many families due to the emergency situation caused by COVID-19.
The principal amount of credit payment accounts for significant part of the
payment, therefore, applying for the credit holidays allows you to avoid
mortgage, consumer loan, student loan, car leasing and other credit payments
for a certain number of months. </p>

<p><b>What is the dark side of the credit holidays?</b><b></b></p>

<p>As
soon as the family’s financial situation has stabilised, credit holidays should
be terminated, and repayment of full credit amount should be resumed. By
choosing to prolong the credit holidays, customer runs a risk of larger amount
of monthly payment for the remaining period, since the validity period of the
contract is not prolonged. The principal amount accumulated during the credit
holidays will be divided for the remaining monthly payments, thus, monthly
payment will increase after the credit holidays.</p>

<h2>Alternative to the credit holidays – merge of credits</h2>

<p>In
order to avoid large amount of monthly payments in the future, several credit
companies offer <a target="_blank"  href="https://sefinance.lv/lv/services/loan-merge/?utm_source=1188&amp;utm_medium=homepage&amp;utm_campaign=catalog%23/loan_merge/">merge of credits</a>, as well as refinancing by reducing
interest of a specific credit. These companies
include also “<a target="_blank"  href="https://www.1188.lv/katalogs/finansu-pakalpojumi-1900/sefinance-sia-kreditu-centrs-668890">Sefinance</a>”.  Ingus Rozenfelds, Board Member of the
company, points out that this is not only a way to improve monthly payments,
but also to save several thousand euro, which would otherwise be paid as
interest. The
company “Sefinance” considers itself as a credit
doctors, since financial situation of every customer is dealt with on
individual basis, going into details and offering the most beneficial
solutions. Advice is available by e-mail <a target="_blank" >info@sefinance.lv</a> of free phone 8355.</p>

<p>Call
and find out the best action to take.</p>

"Sefinance" SIA, Kredītu centrs

Money

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The emergency situation declared worldwide and also in Latvia due to COVID-19 or coronavirus in March 2020 has significantly affected our national economy in general and each household individually. Even...

What do the credit holidays mean and what is the permissible duration thereof?

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