Pay off debts with holiday pay

A shift can be seen in the spending of the annual holiday allowance. Consumers are increasingly using the holiday pay that employers pay out in May or June, to pay off debts or to eliminate payment arrears. In these months, 7% more is repaid in debt than in other months. Last year this was already done 10% more often compared to a number of years before. The holiday pay is still used by the largest group for a holiday but the money used for other purposes is increasing.

Payment reminders

money

In the event of payment arrears, it pays to send a payment reminder to your customer around the payment of the holiday pay. During that period, the customer will more often be able to pay the outstanding amount.

Debts incurred for housing and care, for example, are (partly) repaid thanks to this ‘extra’ salary. In the case of debts you are not obliged to use the holiday pay to reduce the debt. Older people do this more often than younger people; they see that it is “wise” to keep the debt to a minimum. The holiday allowance gives the possibility to reduce the outstanding amount.

If you have a loan you can also use (part of) your holiday allowance to repay your loan free of charge.

If you have a loan you can also use (part of) your holiday allowance to repay your loan free of charge.

Whether you have a personal loan or a revolving credit, you can repay any two types of loan in the interim. You thereby reduce the total outstanding loan amount.

Merge loans

In the case of several outstanding debts with, for example, the tax authorities, health insurer, family and / or friends, employer or suppliers, it may be that the overview is gone. How high is the debt and which debt do you pay first?

Sometimes taking out a loan is the solution to get out of debt; you need money to pay off the debts. If you have several loans, merging the loans into one comprehensive loan gives clarity. It is also cheaper; you receive a new interest and new conditions. It is also true that the interest on one large loan is lower than the interest on several small loans separately.

Leave a Reply

Your email address will not be published. Required fields are marked *