Beware Of Pass A Payment Offers On Your Car
Loan
If you have a car loan, chances are that
you have received offers to skip a month on your car payment. You
are tempted to accept the offer to have extra cash for a vacation or for the
holidays. You may even be able to skip a payment more than once a year through
special promotions.
There is a really big catch to accepting
these offers. It used to be that if you passed a payment on your car loan, they would
give you an extra month at the end of the loan. Not anymore! Now, what
they do is add the amount of payments that you skipped, along with interest, to
your final car payment. This leaves you with a balloon payment at the end
of your loan.
For example, if your car payment is $235
per month and you accept 3 Pass A Payment offers during the course of your loan,
your final payment would be $940 plus interest!
So, unless you're positive that you are
going to win the lottery before your final car payment is due, it is best not to
accept any Pass A Payment offers-- no matter how tempting it may be
now.
