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The Covid-19 debt repayment holiday that most banks offered expires at the end of the month.

Clement Manyathela interviewed Lee Naik, CEO at TransUnion.

A new survey by the credit bureau indicates that nine out of 10 respondents worry they won’t be able to repay their debt when it becomes due in less than two weeks’ time.

The TransUnion survey found that 16% of those surveyed lost their jobs since the start of the lockdown.

Some banks have plans in place to avoid defaults when the debt holiday expires such as consolidating clients’ debt into their home loans or using other investments as collateral.

One out of every six people has lost their job [since the start of the lockdown] … One out of every five Millennials [age 26 to 40] has lost their jobs…

Lee Naik, CEO - TransUnion Africa

In a normal month, we see 150 000 people requesting payment restructuring from their lender. In April, it jumped to 380 000 requests. In May, it went up to 1.3 million requests!

Lee Naik, CEO - TransUnion Africa

The scary thing coming out of the data is that only 20% of consumers who have been impacted by the Covid-19 lockdown have approached the banks...

Lee Naik, CEO - TransUnion Africa

FNB has come up with a separate agreement over 60 months to allow their clients to deal with the pressure…

Lee Naik, CEO - TransUnion Africa

Payment holidays cost you in the long run…

Lee Naik, CEO - TransUnion Africa

On a case-by-case basis, depending on your circumstances, your bank may or may not extend your debt repayment holiday.

Lee Naik, CEO - TransUnion Africa

Listen to the interview in the audio below.

This article first appeared on CapeTalk : Day of reckoning looms for people who took a 'debt repayment holiday'

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