What does a payment holiday cost?
19 September 2025 · Debt Review Centre
A payment holiday postpones payments under an agreed arrangement. It does not necessarily pause interest or fees. Before accepting one, ask what will happen to your balance, monthly instalment, repayment term and total cost.
Ask what is actually being postponed
- Which payments may be skipped, and on which dates?
- Will interest, fees or insurance charges continue?
- Will the repayment period be extended, the monthly payment increased, or both?
- How will the arrangement be recorded and confirmed in writing?
A simple interest-only illustration
Suppose a balance is R10,000 and interest is 1% per month. Assume no payments for three months, interest added to the balance each month, and no fees or other charges.
| Point in the example | Balance |
|---|---|
| Before the payment holiday | R10,000.00 |
| After month 1 | R10,100.00 |
| After month 2 | R10,201.00 |
| After month 3 | R10,303.01 |
The balance has increased by R303.01. That is the interest added during these three months under the stated assumptions. It is not the full extra cost over the remaining agreement, because interest may continue on the higher balance.
Your agreement can use a different interest calculation and include other charges. Ask the creditor for a revised schedule showing the full repayment cost. Use the total cost of credit calculator to explore how a rate or term affects a repayment scenario.
Check the budget after payments resume
A temporary postponement helps only if you understand what follows it. Compare the future payment with your expected income and necessary expenses. Use a household budget to see whether the shortfall is temporary or ongoing.
A lender payment holiday and a debt review payment are different situations
If you are under debt review, do not change payments or agree a separate arrangement without discussing it with your counsellor. Your existing plan and legal stage matter. Read what to do before missing a debt review payment.
If repayments remain unaffordable, ask for an assessment of the whole budget before relying on another postponement.
Related questions and next steps
- Speak to a registered debt counsellor
Find out what an assessment should cover and what support to ask about.
- Debt review fees
Know which charges to ask about before accepting a quote.
- Credit-card interest and debt review
Understand how interest affects repayments and what to discuss with a counsellor.
- Total cost of credit
Explore how interest, payments and term affect repayment cost.
If your current payment plan feels impossible, speak to us first.
Before skipping payments or pausing arrangements, get a free assessment so you know which debt relief options are available and what the risks are.