Thinking about taking up your bank's offer to skip a monthly payment on your loan? It'll cost you.
Around this time every year, as consumers try to fit holiday-related expenses into their cash flow, some lenders offer their customers the option of skipping a monthly payment on car loans, personal loans and credit card debt. While the details of the offers can differ, the result is generally the same: You pay more over the life of the loan.
"These offers are not made out of altruistic motivations," said Greg McBride, Bankrate.com's chief financial analyst. "They are financially beneficial to the loan servicer or lender that's offering it."
These skip-a-month offers usually come with a fee of $25 to $35 that does not benefit your balance.