State Farm Bank- skip this December's payment! (for $40) - Mothering Forums
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#1 of 20 Old 10-28-2008, 04:45 PM - Thread Starter
 
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I was so excited to get this from the bank where we pay my husband's truck loan ($422/month!!). They are allowing people to skip december's payment (and add a month onto your loan, of course) but they are charging a $40 processing fee (which doesn't go toward the payment.) I would love to take advantage of this, but in essence we are paying $40 more than we normally would in the long run. Would you do it?

Amy, mommy to Ava, 6, Gavin, 4, Lila, 2, and Baby #4 due in early November! joy.gif
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#2 of 20 Old 10-28-2008, 04:50 PM
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My credit union offers this two times a year. You can use it any two months, but not two consecutive months. I've never used it, but I would think most people probably use it in November and January (the month before - shopping - and the month after - when all the other Christmas indulgence comes due). The charge is $25 for each "skipped" payment. $40 sounds about right for a for profit bank.

But when you are calculating the cost of skipping the payment, remember to amortize your interest over the additional month.
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#3 of 20 Old 10-28-2008, 04:52 PM
 
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Really it's just a gimmick to give people some Christmas cash, and make money off it.

I'd make the payment. If you don't your pretty much taking a kick to the teeth, and the bank will be the ones laughing.

Don't play their little game so it benefits them...
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#4 of 20 Old 10-28-2008, 04:56 PM
 
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Our credit card company offers this. If you're current on payments for a few months you qualify for a payment holiday, oh but interest is still added. We don't do it.
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#5 of 20 Old 10-28-2008, 05:11 PM
 
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I wouldn't do it unless it was an emergency and I couldn't make the monthly payment somehow. Otherwise I am just extending the term of my loan and paying more in interest and fees.

Kirsten, mama to Monkey since May 2007 and Bean born 11/7/09
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#6 of 20 Old 10-28-2008, 05:15 PM
 
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Our credit union does this but the fee goes to a local charity.
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#7 of 20 Old 10-28-2008, 05:33 PM
 
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I have never done it, but can't wait to get the offer from our credit union this year!

They offer it twice a year also, and I'm not sure what the fee is... I was thinking $20 last year?

Yes, I'm aware that we will be paying more in the long run (plus the fee of course), and extending our loan, but... It's one of our few options to pay for Christmas.
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#8 of 20 Old 10-28-2008, 06:26 PM
 
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I've only done it once, when I was on unpaid maternity leave. Unless we were really in a squeeze, i wouldn't do it again.

Wendy - mom to dd1(11), dd2(7), dd3(3)
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#9 of 20 Old 10-28-2008, 08:58 PM
 
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I'd do it if I wasn't able to quite budget heating the house and Christmas dinner and inexpensive gifts in Dec, but if we could handle it no way I'd defer and pay $40 for it.
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#10 of 20 Old 10-28-2008, 09:09 PM
 
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I wouldn't do it for a 40 dollar fee. I might consider doing it for no fee

Alicia DH Mike DS Gage Lola & Zeus Fishy Dishy, Charkey and Shark
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#11 of 20 Old 10-29-2008, 12:41 AM
 
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no no no no no. Not unless we were in a horrible financial position and it meant the difference between ds eating that month or not. In which case, I'd probably be selling the car too. My car payment is in the budget. That money doesn't get touched for anything else. I spend little bits here and there to prepare for birthdays/christmas/etc so it doesn't all come out at once (I'm pretty much done with Christmas for ds, other than stocking stuffers, and it's not even Halloween ).

Steph, DH Jason (1-1-11), DS Owen (10-3-03) and DS Kai (10-13-11)

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#12 of 20 Old 10-29-2008, 02:00 AM
 
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I wouldn't go for this deal. I would just try and be a bit more frugal about Christmas gifts, if that's an option.
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#13 of 20 Old 10-29-2008, 10:30 AM
 
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Is it an interest free month too?

About every other month my visa puts $0 as my minimum monthly payment with a spiel about 'using the money for other bills' etc. The thing is the interest just keeps adding up, so it's really would hurt us in the long run. So no matter what 'you don't need to make a payment' they throw our way I still pay what would have been the minimum amount.
I think the only way I'd do a 'deal' like that is if it was a choice between paying them anyway and feeding/housing my kids.

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#14 of 20 Old 10-29-2008, 10:36 AM
 
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I wouldn't be tempted at all. If it was the only way we could have Christmas gifts, then we wouldn't have gifts this year, oh well.

Homeschooling mama to 6 year old DD.

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#15 of 20 Old 10-29-2008, 05:19 PM
 
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Nope, I wouldn't do it. It's just going to cost you more in the long run.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
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#16 of 20 Old 10-29-2008, 06:39 PM
 
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Don't do it. Even without the fee.

When banks make you offers of this type, it ALWAYS means that in the long run it will cost you money and will make the bank money.
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#17 of 20 Old 10-29-2008, 06:47 PM
 
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I'd pay the fee and do this. I know it costs more in the long run, but things aren't all above water right now and any bit to get through the rest of the year would work for me.
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#18 of 20 Old 10-29-2008, 09:30 PM
 
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I would only do it if it would help tremendously for the month of december. If you can already swing things it's just a bit tight then skip it.
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#19 of 20 Old 10-29-2008, 09:53 PM
 
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Quote:
Originally Posted by kangaroomum25 View Post
Our credit union does this but the fee goes to a local charity.

I really like that idea--sounds like you have a great credit union!
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#20 of 20 Old 10-29-2008, 11:12 PM
 
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Quote:
Originally Posted by kirstenb View Post
I wouldn't do it unless it was an emergency and I couldn't make the monthly payment somehow. Otherwise I am just extending the term of my loan and paying more in interest and fees.
exactly. this is a bad idea unless you need the money, really, really, badly.

Even then-- I've gotten a late fee waved in a pinch (but I had to do double payment the next month) while we were moving, and I just plum forgot about the car payment.

Texmati-- Knitter, Hindu, vegetarian, WOHM. Wife to superdadsuperhero.gif and mom to DS babyf.gif24 months, and DD boc.gif 8 months! .

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