McCarthy Attorneys Inc

Taking A Payment Holiday VS Claiming Against Credit Insurance

Taking A Payment Holiday VS Claiming Against Credit Insurance

TAKING A PAYMENT HOLIDAY VS CLAIMING AGAINST CREDIT INSURANCE

The arm of the COVID-19 pandemic has stretched across our nation and has gripped not only the people of South Africa but their pockets as well. The economic impact is being felt from the individual up to large corporations.

To assist their clients with the looming prospects of defaulting on credit payments as a result of low cash flow during the lockdown, certain major banking institutions have introduced instalment relief plans, commonly referred to as a “payment holiday”.

While many are inclined to jump at the opportunity of a quick reprieve, they do not, however, give adequate consideration to the potential negative effects of this preferred form of instalment relief. Nor do many consider, or are even aware of, a possible more suitable alternative, that being credit insurance.

For a brief look at these two relief options and a few of the possible positive and negative points of each, continue reading our letter here.

If you have any questions about other Labour or Land issues, contact McCarthy & Associates Attorneys on (033) 266 6170 or ad***@ma****.za