Payment holidays linked to additional financial burden

Payment holidays linked to additional financial burden

A debt counselling expert says there's an increasing number of South Africans knocking on their doors upon realising the realities associated with the aftermath of payment holidays. 

Loan agreement
Loan agreement/ iStock

Debt Busters has been commenting in light of a recently released report in the financial and banking sector showing about 1,6 million South Africans took advantage the 3 month payment holiday due to the financial impact by the COVID-19 pandemic. 

This translates to an accumulative R20,7 billion in additional interest between April and June from previously existing debt and loans. 

Debt Busters Benay Segar says some are realising now that things are not any easier post payment holiday.

"We are certainly seeing more consumers coming to us with more inquiries that debt is overburdening them", he said.

"This started around July, accelerated in August and is now in full swing. Payment holidays are over but more consumers are still seeking financial assistance", Segar said.

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