What you need to know when your repayment holiday ends

At first glance, a Statement of Financial Position (SOFP) may seem daunting, but it’s just like putting a budget together.  Filling out this form can help you clearly understand exactly what you earn, your regular expenses, what debts you owe, what you can afford to pay and where you may need to review your spending.

If you need help to do this, we encourage you to contact the National Debt Helpline for free advice on how to tackle your debts.  Similarly, there is information on the Government’s Moneysmart website https://moneysmart.gov.au/budgeting/managing-on-a-low-income, or our own website https://www.pepper.com.au/lending/financial-assistance-hub/money-management-guide.

Pepper Money uses the information you provide us in the SOFP along with any supporting documents we may request, such as your bank statements, or Centrelink documents, to review your current financial situation, and assess your ability to repay your loan. 

The information you provide helps us to determine when it may be an appropriate time to end your current arrangement or extend the period of financial assistance that we have offered you.

During our review call with you, we may ask you questions about the information you’ve sent us and agree on a manageable repayment plan that is within your means, to get you back on track. Alternatively, it may be clear that we need to extend the initial period of financial assistance.

Sending this information to us beforehand means that both you and the Pepper Money Customer Assist Team Member you will speak with, are properly prepared to discuss the next steps during your review call.

Pepper Money may provide customers with an initial assistance period up to a maximum of three months.  Rather than offering an automatic extension, we take the opportunity to review your situation with you at the end of this initial assistance period to assess your capacity to start making partial or full repayments.

As Interest on your loan continues to accrue during any assistance period this is likely to mean your loan balance will increase as well as the total interest paid over the term of the loan.  To avoid increased loan repayments or having to pay additional interest, the sooner you can start making repayments, the better off you are likely to be in the long run.