In the guise of "being nice" to you as a customer, banking institutions, among others, offer customers a chance to skip a loan payment. They aren't doing you any favors.
My auto loan is $212. The fee to accept this offer is $35, or 17%:
With all the gifts, decorations, dinner parties and traveling that come with the holiday season, you probably feel short on cash. Why not take a financial break with Skip-A-Payment from ___________?
For only $35, you can defer one loan installment & get funds to catch up on bills, buy the perfect present, or whatever else you need.
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I'd still be accruing interest on the $212
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I'd be paying interest on the fee, which some institutions may run as a "purchase" at a much higher interest rate and tacked on at the end of my loan. They choose which gets paid first.
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My $212 payment would basically be converted into payday loan type terms. And that's if I do it only once.
Banks are NEVER doing you a favor. Ever. These offers are very lucrative for them, not you. It may also affect your insurance coverage and your overall payment history. It might even affect your credit rating if it's incorrectly reported.
Submitted November 05, 2019 at 09:23PM by R-O-T https://ift.tt/2NFrUQM
