On Your Side: Skip a payment option
SPRINGFIELD, Mo. (KY3) - For many, this is the most expensive time of the year.
If you’re having a tough time making ends meet, you might consider the ‘skip a payment’ option offered by many banks and credit card companies.
Kenny Gott with Piatchek & Associates says read the fine print. If you skip now, you might pay more in the long run.
“Skipping a loan payment means that amount gets tacked on to the end of the loan. You’ll pay interest on it until then. Usually there’s a fee you have to pay to skip a payment. So mathematically, it’s not a good idea. If your cash flow is very tight around the holidays and skipping a loan payment will really help, go ahead, but that could be a sign your budget is too tight,” he said.
Here’s another thought. If your wallet took a hit because of the pandemic, tell your lender. Many have COVID-19 help programs.
See if you can reach an agreement, like paying the entire bill a few days late, without late fees. It never hurts to ask, especially if you have a good payment history.
Same goes for your, power, trash and phone bill. One phone call can go a long way. Be honest about your situation and ask to make payment arrangements.
If you’re struggling, in January, make it a goal to save a little each month for holiday spending in 2021.
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