Can I increase the term of my loan or mortgage?
If you’re worried about your payments increasing when your payment holiday ends, one option might be to increase the term of your loan or mortgage. This will depend on your creditor being willing to do this.
The advantage is that your repayments will be similar to what they were before. The disadvantage is that you’re likely to pay more in interest overall.
Other options for when payment holidays end
Make a budget
If your payment holidays are ending, it’s really important to make sure your budget is up to date. That way, you’ll know what you need to do to make sure you can afford your repayments.
The first step is to talk to your creditors and come to an agreement about what they’re willing to do to help you. Once you know what your new payments will be, and for how long, you’ll be able to take a fresh look at your budget.
We can help you revise your budget, or follow our budgeting guide to put together a new one.
When putting together your budget, remember to include the interest you’ll have to pay back on your missed payments.
Look at where you can save money
If you’re worried about your loan, credit card or mortgage payments restarting, it’s a good idea to look at where you can save money. Doing this might help you to afford your repayments more easily.