If you have made an agreement with a credit service, such as a payday loan provider, you will understand that you have agreed to make repayments on the agreed terms. But what happens if your personal and financial circumstances dramatically change, and beyond your control, after that agreement has started. In the case of modern, forward thinking responsible short-term loan lenders you will be able to request a payment holiday, or a restructuring of the debt payment plan. Always understand the terms and conditions of any credit agreement prior to signing up, and ensure you are working with a reputable lender.

Whenever you have debt problems it can be a difficult and stressful time. Taking out credit of any form will alleviate those issues in the short-term but it is important that you do everything you can to ensure that the agreed repayment terms are spread over a length of time that suits you, and that the regular payment amounts are suitable to your budget.

When you have a short-term problem financially that has come out of the blue, keeping you away from work for a short period, or a longer period of unemployment, it is best practice to speak to your creditors as soon as possible. Honesty is always the best policy in these circumstances, as it is better to be upfront and face the problem head on and find a solution, than to hide away and face the consequences of late payment fees and added interest as the debt piles up.

It may be that you just require a month, or a few months holiday from making repayments. This break could give you the time you need to find new employment, or to pick up extra work that allows you to comfortably pay back the agreed debt without getting into further trouble. There is never any guarantee that your creditor will agree to this, but it is better to be upfront and to see what they can do. Some of the newer breed of payday loan lenders are more likely to offer flexibility, either in the form of a payment holiday, or a restructuring of the debt with a non-payment period at the beginning of the new agreement.

If your creditor does agree to a payment holiday it is likely that the gap will be marked on your credit file, and you should be fully aware of this before agreeing to the payment holiday, in much the same way you must be informed of all eventualities before signing up to a credit agreement in the first place.

When asking for a payment break have as much information to hand as possible. This should include your current and expected income, living expenses and other debt you might have. From here they have all the information ready to make a decision on whether to accept the proposal of a payment holiday, and how long that holiday should be, and what structure the payments should be when you begin to repay again.