Should You Take Advantage of Credit Card Payment Holidays?

Have you just received an offer for credit card payment holiday from your card issuer? And would you like to know if you should take advantage of it? If your answer to these two questions is YES then let’s take a closer look at what payment holidays are all about and how you should respond to such offers.

What Payment Holiday Really Is


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Generally speaking, a payment holiday is an offer for a whole month off from paying your credit card bills. This is usually offered during special holidays, like Christmas or Thanksgiving, or to consumers who have been consistent, in terms of submitting complete and timely payments of their monthly dues.

Offers for payment holiday usually have high acceptance rates. That’s because credit cardholders think they can easily take a month off from the stress of settling their credit card charges. In fact, most of them think that they’re free to use a greater percentage of their monthly income for covering more important personal and household expenses. However, it is worth noting that such ‘holidays’ are not beneficial at all. In fact, they represent a great money-spinner for credit card companies, which allow them to collect more cash from their clients. How come?

Well, the longer your payment holiday is; the bigger the interest payment you will surely make to your card issuer. This is especially true if you’ve decided to carry balance from one month to the next. In fact, if you will closely consider the math as well as the computations involved in a payment holiday, you will surely discover that such program actually works to the disadvantage of credit cardholders, like you.

Should You Accept the Offer?

As much as possible, you should decline offers for payment holidays. Instead, you should stick to your debt repayment plan and submit on-time and complete payments to the credit card company. After all, such decision can help you avoid incurring a huge financial obligation. At the same time, it can help you keep your credit payments minimal. And, most importantly, it can help you build and maintain a solid credit profile, which can in turn help protect your financial prospects.

You should also keep in mind that if an offer seems too-good-to-be-true, there will surely be a greater harm than benefit that’s in store for you. After all, most credit card firms today are looking for ways to generate an even bigger profit from the programs they extend to consumers.

So always be inquisitive. Before signing up for a promotional program or for an added feature in your credit card, we advise you to consider first your options very well. Ask yourself the following questions: Would it be wise to sign up for this program? How can I benefit from it? How will it affect my personal finances? What do other credit cardholders say about this program? Keep in mind that the answers to these questions can surely help you make up your mind regarding the offers you will soon receive. And in time, you can reach the right decision that will surely work to your personal advantage.

How to Buy Yourself Time When You Can’t Pay

 

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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