Skip-A-Pay
How skip-a-payment works
Skip-a-payment is available to qualifying members once or twice a year. The program is generally only allowed for loans with terms that are 12 months or longer, have been open for at least six months and have a good payment history of six or more months. At WEA Credit Union, we offer a skip-a-payment program during certain times of the year. If you are considering skip-a-payment, call, or stop in the credit union to see if you are qualified.
Why choose to skip a payment
The primary benefit of choosing to skip-a-payment is to gain some extra cash flow. During an expensive time of year, such as the summer or holiday season, members may be strapped for cash and forced to use their credit cards – and pay high interest rates – on every purchase they make. Skipping a large payment on a monthly loan frees up funds for day-to-day expenses so they don't finish the month in the red. Removing the financial stress also makes these times of year more enjoyable.
Disadvantages of skip-a-payment
It's important to consider these factors before choosing to skip payments on loans or credit cards:
Longer loan term
Skipping a payment lengthens the life of a loan. The monthly payment you skip now doesn't disappear; it is simply moved to the end of the loan. This means you'll finish paying off this loan one month later than planned.
Accrued interest
Most monthly payments to loans and credit card balances consist of contributions to both the interest and principal of the loan or credit card. While skipping a payment allows you to take a break from paying down the loan balance, interest still accrues and is tacked on to the end of the loan term. You'll ultimately be paying more in overall interest over the life of the loan if you choose to skip a payment.
