Q: I'm looking for a way to cut expenses to be able to pay an unexpected bill, so I don’t have to rack up a huge credit card bill. I'm considering skip a payment. What do I need to know?
A: CFCU’s skip a payment program can help give you more cash in your wallet for unexpected bills, car repairs, vacation, etc.
Skip a payment is a program offered to our members that allow you to skip a monthly qualified loan payment when you need to. There is a processing fee of $35 per loan skipped.
Here are some important points to consider before you decide to skip a payment:
1.) Extra cash in your budget
When your expenses are high, 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 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, you will continue to accrue finance charges on the skipped payment.
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 loan payments 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. We are here to assist you! Speak to a member representative for advice on money management and budgeting tips. As a member of Catholic Federal Credit Union, you can take advantage of the Accel program, a free financial education and counseling program. To use this service, simply visit Accel online or call 1-877-33ACCEL.
Want to free up some cash in your budget? Call, stop by Catholic Federal Credit Union or log into your Online Banking account at www.cathfcu.com and click on Services and select Skip a Payment.
* Catholic Federal Credit Union Skip a Payment: Finance charges continue to accrue during the skipped loan period. Loans must be current to qualify. Please note that mortgages, home equity loans, credit cards and lines of credit are not eligible. A $35 processing fee will be assessed for each skipped loan. Each loan may be postponed twice per 12 months and 3 consecutive payments must be made in between requested skip a payments.
Your Turn: Have you ever taken advantage of the credit union's skip a payment offer? Why or why not? Share your experience with us in the comments!