Families urged not to suspend loan payments over Christmas

Pacific families are being urged not to take up the offer of a payment holiday on loans to help ease financial pressure on them over Christmas.

Financial Ombudsman Susan Taylor told Pacific Mornings that people end up paying more in the long run because the loan takes longer to pay off.

Taylor said this happened in one case she came across.

"The borrower thought that by taking the payment holiday, the loan literally stopped for four weeks.

"So no interest being charged and then he would pick up the loan again after that four weeks.

"But what in fact happens is that interest continues to be charged on the loan during the holiday period."

Watch the full interview with Susan Taylor on Pacific Mornings: