It’s that time of year again…the time of year when people begin to receive offers in the mail that go like this:
Skip-a-Payment! Have extra cash for the holidays!
To me that translates to: “Skip-a-Payment! Owe more money and get deeper in debt!”
The offer I received went out to all credit union account holders, not just those with loans from the credit union. It says that you’re allowed to skip a loan payment one time in either November or December — you just have to specify which month. How generous, right?
I’m a curious person, so I read some of the fine print on the offer.
There’s a $30 processing fee for each loan payment that is skipped, interest continues to accrue, and it “may extend the term of your loan”.
So they’re not letting you “skip” anything; they’re just rearranging things. It also notes that, “In some cases, the amount of accrued interest may be greater than the amount of your next regular payment”.
I’m really surprised that the credit union is offering this. I’d always thought they were more likely to have their member’s best interests at heart. So it was a disappointing thing to receive.
On the plus side, I can remember when an offer like this might have appealed to me, and I’m so very grateful that it’s irrelevant to me now.