Skip-A-Payment: Free Up Cash Flow With A Break From Your Loan Payment
April 30, 2018
Summertime brings loads of expenses that can bust any budget. There are family vacations that put a serious strain on your wallet, costly camp fees for the kids, home improvement projects and dozens of other expenses that may not always be part of your usual financial planning.
Many people wonder how they’ll get through these months. Fortunately, Greater Iowa Credit Union offers an exclusive break from your loan payments during this costly time of year. Now that sounds like a dream vacation!
Skip-a-payment is a program that allows members to skip a monthly consumer loan payment during an especially tight financial season, up to twice in a year.
Specific criteria must be met to qualify for skip-a-payment. The program is generally only allowed for loans with terms that are 12 months or longer, have been open for at least 9 months and have a good payment history of 6 or more months. Some credit unions allow payment omissions on most loans with the exception of real estate loans. Others only allow the payment break on fixed, closed-end consumer loans like auto and signature loans. The program does not apply to credit cards and lines of credit. Nearly every credit union requires you to be up to date on your loan payments, and for you to have sufficient funds in your checking account to cover the nominal associated fee.
If you are considering skip-a-payment, speak to a GICU member service representative for full details, or read more about our program here - you can also find the form to apply!
The primary benefit of choosing to skip a payment is quite obvious - the extra cash flow. 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 (unless you’ve got a GICU credit card!) on every purchase you make. By opting to skip a large payment on a loan, you'll free up cash so you don't finish the month in the red. Summertime is so much sweeter when you're not sweating about your bills!
- auto loan
- credit card
- financial planning
- home improvement