| gone are the days when people left school at 16 | | | | slow spell during the course of their work year or |
| and went on to work for the same company until | | | | to those whose income is mostly determined by |
| they retired at 65. | | | | the commission they receive which can vary |
| Today, many people switch jobs and careers, | | | | dramatically throughout the year. In essence, a |
| sometimes out of choice and sometimes out of | | | | loan which comes built in with a holiday payment |
| necessity whilst many others prefer flexible | | | | break generally allows borrowers to repay what |
| working patterns to cope with the demands of | | | | they borrow in a way that fits neatly into their |
| looking after or starting a family. Others may | | | | lifestyles. Some types allow borrowers to repay |
| choose to take a ‘sabbatical’, i.e. | | | | more than the minimum amount when they want |
| to take some time out to maybe travel the world | | | | to and less when they need to. If they’re |
| or to return to full or part time education in order | | | | getting ahead of themselves with repayments, |
| to better themselves. | | | | then it avoids the problem of increased interest |
| As this flexibility in our everyday lives becomes | | | | charges when they’re looking to take |
| ever more the norm, then so many of us wish to | | | | their payment break. |
| have a similar degree of flexibility when it comes | | | | However, because of the increased flexibility of |
| to our finances. We increasingly want loans and | | | | these kinds of loans, the APR is traditionally higher |
| other financial agreements to work in our favour | | | | than with a normal loan because of the added |
| as opposed to being tied to and dictated to by | | | | flexibility it offers so it’s well worth doing |
| the agreement itself and ‘payment | | | | the sums and working out whether a more |
| holidays’ built into the structure of a loan | | | | flexible loan is financially worth it over the entire |
| are becoming far more common with people | | | | term of the loan. They are also more common |
| being able to take a break from repayments | | | | when looking to borrow money over a shorter |
| either shortly before the loan is due to start or | | | | period. |
| part way through the loan. | | | | It is, however, worth speaking to a financial |
| They can offer an ideal solution to those such as | | | | adviser or independent finance broker firstly if |
| the self-employed whose income can fluctuate | | | | you are considering taking a personal loan |
| dramatically either suddenly or during a regular | | | | payment holiday plan. |