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Should I Skip My Loan Payment?

Obviously there is a lot going on right now in the economy and some of this has to do with the money that we’re making from the jobs that we have and at the end of the day, we might not be able to afford the loan payments that we have.

But I just want to warn you that if you are gonna skip Loan payments or if you’ve got emails and stuff like that there are a couple of problems that I want to go over in this article.

Loan Repayment
Loan Repayment

Three-Point To Check Before You Skip Loan Payment

1. Fine

So that you’re aware that if you skip a payment you might have some consequences and so that’s what this article is about because if you’ve got a car loan or a mortgage and you end up getting an email from those actual lenders to skip a payment then it might actually be something that you can do without much consequence.

But you definitely want to be checking their fine print and that’s the first thing that I want to talk about you have to do your research on exactly what you’re doing.

So if it’s coming from your lender that’s a good thing because they’re gonna have everything written down for you but if you’re just going off rumors in the news that you can skip your mortgage or you could skip your rent I would definitely recommend doing your research.

So that you don’t have major consequences in the end and one of the biggest problems that I’m seeing was skipping a loan payment is that.

2. Repayment with additional interest

A lot of us think that you don’t have to pay that back and in most instances you are gonna have to pay that back you’re either gonna have to do it on the back end which is ideal or you might have to do it in just a few months but it all depends on the fine print between you and your lender because they all have different things that they’re gonna go over and that’s exactly what you have to be paying attention to so for instance.

If you still have thirty four months on your car loan that you owe and you decided to skip a payment through the lender and if it’s on the back end and this is a good thing because that means that you just have thirty five months more to pay on because they’re just gonna push the loan back one month and that’s not really a big deal because you’re not gonna see that for a really long time and that’s what most of us want to.

Do you want to just skip a payment and have it go to the back end and it’s not really that big of a deal but I have heard horror stories about lenders that want their money back within just a few months and this is a huge problem because if you have a $400 car payment and you skip two of them then on your third month they might actually want you to owe twelve hundred bucks and that’s probably not gonna happen.

Because if you needed that money you’re gonna be using it for othert hings and you’re not gonna be saving up to $400 a month that you need to pay off your car.

So definitely check the fine print do your research and make sure that you are confident of exactly what’s gonna happen.

3. May Impact Your Credit Score

If you’re gonna skip a payment and as a last resort if you can’t find any information on skipping a payment from your direct lender then I would call them or email them and have them tell you exactly what’s going to happen if you skip your payment because if you can’t find any information then at least you can call them and find out something a little bit more.

Now the other problem that I’m seeing with skipping your loan payments is that some lenders are actually reporting this information to the credit bureaus as a late payment.

And this is a big problem for your credit score because it is a huge chunk of your credit score.

If you’re having late payments so definitely make sure that you do your research find out what’s gonna happen and if it is gonna affect your credit score now obviously if you have no choice you gotto do what you got to do.

But if you do have a choice make sure that you’re doing it smart and make the right decisions on skipping a payment because your credit score is actually a part of a whole bunch of different categories and each of those categories has a different weight someof them are high impact some of them are low impact.

And it just so happens that your payment history is the biggest chunk of your entire credit score at 35 percent and if you make a late payment it can actually stay on your credit score for 7 to 10 years so definitely don’t make a late payment unless you absolutely have to because 7 to 10 years is a really long time.

Andit’s affecting a very large chunk of your credit score because it is high impact so at the end of the day if you are gonna choose to skip a payment just make sure to do your research and find out also if it’s gonna affect your credit score because there are a lot of lenders out there I’ve actuallypersonally got a few emails I’ve done the fine print I’ve checked everything from them.

And they are good deeds that they’re just doing for their customers so for instance my auto loan they allowed me to skip a payment which I didn’t choose to do that but if I did choose to do it it was just gonna happen on the back end I might pay a little more interest and they’re not going to report it to the credit bureaus and that’s a good thing.

So all in all that was a win-win if I wanted to skip that car payment and that’s just what we want to do we want to do our research make sure everything safe. Make sure it doesn’t affect our credit score

Navjyot Pandey
I connect with individuals, communities, and news outlets to help educate them on money matters and stimulate financial awareness.

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