Skip-a-Payment: Free Cash Flow With A Summertime Break From You 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 NUFCU allowing members to skip a monthly loan or credit card 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 NUFCU, members are eligible to skip one payment a year.

For a loan to qualify for skip-a-payment, it needs to have a term of 12 months or more, have been open for at least 6 months and have a good payment history for 12 months. Skip-a-payment at the credit union is available on unsecured-installment, new vehicle, used vehicle, RV, Visa and personal loans. NUFCU needs 10 days in advance of a payment due date to process the skip-a-pay request.

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, you will be billed for interest on the skipped payment. You’ll need to pay that up at the end of the loan term.

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 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.

Want to hit the road without worrying about bills? Call, click or stop by NUFCU today to learn about our skip-a-payment program.