Don’t Bite the ‘Skip-a-Payment’ Bait from Creditors

Don’t Bite the ‘Skip-a-Payment’ Bait from Creditors

Each year around the holidays, consumers receive offers giving them the chance to skip a debt payment for the holiday month.  It is an offer that is timely and enticing at a time that is hard to refuse even after thinking about the pros and cons.  

Be reminded though that if you accept this offer, chances are you will be spending the money on something else instead of saving it. You will then have to accumulate it again because the payment due didn’t go away, but instead was only delayed with fees and interest.  Even if you saved it, you are looking at a longer period to pay off the debt in addition to the extra fees you will undoubtedly rack up.

This is a good reason why you should designate an automatic savings account for the holidays.   In this way, you would set a budget that covers the amount you would typically spend for the holiday, then have it
automatically deposited to the savings account at the desired interval.  Having done that for a year, when the holiday arrives you would not need to consider your creditor’s offer.  Using this method, the holiday account would be automatically funded each year until you cancel it.

Offers to cash checks, skip payments, etc. may seem tempting during the holiday season, but be reminded that no matter the form in which these offers are presented, it is very unlikely that the creditor would be doing anything like that for the your benefit.  

Carlisle

Welcome to My Savings and Me. I have been blessed just enough to have a financially stable life for my family and myself. I have used simple saving and investing methods to make my money work for me and it is now my hope that information shared throughout this blog may ignite a fire in others.

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