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.
