DEBT HOLIDAY: What Is It and Why Do We Need It?

What is a debt holiday? Just as the name suggests, this would be a desirable vacation, one that does not involve leaving your self-quarantine, from making payments on things that put Americans in debt: mortgages, car payments, student loans, credit cards, etc. Similar actions are being taken in other countries in response to the COVID-19 pandemic, such as the United Kingdom, where they are employing a mortgage holiday, and Switzerland, where they are merely suspending the “enforcement” of debts. Some major corporations in the United States are already working towards helping out Americans who are impacted by COVID-19, such as Comcast, PG&E, AT&T, Hyundai and Duke Energy. These actions range from refraining from discontinuing someone’s service due to nonpayment to offering free new service to students who must try to continue their education online, however, we believe these efforts are not enough to help “bend the curve” for the economic crisis many are feeling.

It is now time for American politicians to step up, put politics aside, and help as well. While this proposed debt holiday won’t magically erase all debts for Americans, if Congress takes our advice, it will provide a moratorium on the collection of larger debts including mortgages/rent, car payments, student loans and credit cards. This could also potentially help hundreds of thousands of small or new businesses, who cannot operate or raise funds during this trying time. Currently the government is offering small business loans amid the crisis, but this may not be enough to help them succeed and they may be too little too late. Some small businesses are trying to offer new or different services, or are relying on gift card sales, but many seem to be closing their doors altogether because these efforts are simply not sustainable, or because they are being ordered to, such as those in the state of Pennsylvania.

To help express your support for a debt holiday, please visit https://getjuris.com/debtholiday to have a letter drafted and sent to your senator. You can use the code DUNSMOORLAW to have this sent for free for a limited time. This simple action takes less than five minutes and you can help send the message to our senators that the time for a debt holiday is upon us. Together we can beat Covid and the economic crisis it has put the world in.

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