Reading Time: < 1 minute

Banks Report on Payment Holidays

ABSA report that they have already committed to giving relief to their clients to the value of R5.8 Billion between April and June.

They say this is to clients across every income category and type of client. In March they already offered relief to 376 000 account holders who approached them for the 3 month payment holiday option.

By 14 April as the end of the original lockdown period drew close (before being extended) Nedbank had already been approached by 130 000 clients for relief and payment holidays. The bank was very proactive in making these offers.

Standard Bank announced this month that they have offered relief to almost 150 000 clients to the value of R1 billion.

The banks say they have been able to do this because the SARB lower liquidity ratios which freed up a lot of funds to use during the crisis.

Debt Counsellors Advise Rather Claiming Insurance

Debt Counsellors were quick to warn consumers that payment holidays (even short term ones) can extend repayment terms a lot and can end up costing consumers more than they think due to interest.

They have advised consumers to rather try and claim on their credit insurance policies that are linked to each of their credit products. These can in most cases cover covid-19 related claims and cover payments were consumers have lost income due to lockdown.

If you are unsure as to the best option for you then contact your local Debt Counsellor to discuss your unique situation.