Take a Summer Vacation from your Loan Payments
Many of us are taking advantage of loosening restrictions from the pandemic and are looking to get out and enjoy a bit of summer. But with rising transportation and travel costs, balancing the budget for the long-awaited vacation can be a challenge.
For those just getting back on their financial footing, a vacation may not be in the plans, but having some extra cash on hand could provide a nice break.
One option for credit union borrowers is to take advantage of the Skip-A-Pay* opportunity now!
To help you determine what’s right for you, here are some of the basics of skip-a-payment programs and how they typically work.
A number of lenders like Pyramid FCU offer members in good standing the ability to “skip” one or more payments on different types of loans. Members can apply to skip up to two loan payments over a year’s time for a small fee of $30 per skip.
Eligible loans include most auto, boat, RV and motorcycle loans, as well as share or certificate-secured, and personal loans.
Keep in mind, skipping a payment doesn’t mean forgetting about it completely. The payment you skip is added to your loan repayment schedule and essentially extends the term. The deferred interest is added to the outstanding balance too.
The good news is that approved skips won’t negatively affect your credit as long as you continue to make any upcoming payments.
Skipping payments with a program like Skip-a-Pay is different than loan forbearance. A forbearance gives you a temporary pause on payments while you are experiencing hardship during a financial crisis or personal emergency.
Be sure to contact us immediately if you need assistance before you miss payments or your loans go into delinquent status. There are ways to work together to find solutions to help you weather a financial storm.
*Some restrictions apply. Interest will continue to accrue on the loan during the waived payment period. Debt Protection premium charges, if applicable, will continue to accrue. The loan maturity date will be extended when the payment is deferred. All loan terms and conditions remain the same. See the Skip-a-Pay form or contact your branch for more details.