Skip-A-Payment: Free Cash Flow with a Summertime Break from Your Loan Payment
Q: Summer puts a strain on my budget because of extra expenses! I've been looking for a way to get through it without racking up a huge credit card bill. I'm considering skip-a-payment. What do I need to know?
A: Summer expenses can bust any budget. Skip-A-Payment will give you more breathing room during this expensive time of year.
Skip-A-Payment is a program offered by Health Care Family Credit Union allowing members to skip a monthly loan payment during an especially tight financial season for just a small fee. Many credit unions offer this program during the holiday season and again during the summertime. At Health Care Family Credit Union, members are eligible to skip 2 payments per year (other restrictions apply).
Here are some important points to consider before you decide to skip a payment:
1.) Breathing Room
During an expensive time of year, you might not make it through the month without resorting to swiping your credit card - and paying high interest on every purchase you make. By skipping a large bill payment, you'll free up some cash for your daily expenses so that you don't finish the month in the red.
2.) Longer Loan Term
Skipping a payment means lengthening the life of your loan. You are essentially moving this month's payment to the end of the loan.
3.) Accrued Interest
While you won't be racking up credit card bills with high interest rates this month, interest will continue to accrue during the time for which the payment is skipped.
Did You Know?
- Many people fall out of the habit of making their monthly payments when they choose to skip just one payment. Remember: This is a one-month-only deal! Be sure to make your payment next month.
- The popularity of skip-a-payment plunged at the turn of the millennium. It is now offered almost exclusively by credit unions, with very few banks still offering it.
- If you feel like you could use skip-a-payment every month, you may be in financial trouble. Speak to a Health Care Family Credit Union Member Service Representative for advice on money management, debt counseling and budgeting tips.
Want to hit the road without worrying about bills? Call, click or stop by Health Care Family Credit Union today to learn about our Skip-A-Payment program. Ready to Skip-A-Pay!? Below is a link to our skip-a-payment form.