With Self Memorial Hospital FCU Skip-A-Payment, eligible members can skip up to two loan payments a year with a maximum of six per loan.

What does it mean to “Skip-a-payment”?

When you skip a payment, you essentially delay making a loan installment payment for a specified period, such as one month. The skipped payment is then added to the end of your loan term. This means the final payment date is extended by the amount of times you chose to defer the payment.

How does Skip-A-Payment program work?

SMH FCU Skip-A-Payment program allows qualifying borrowers to defer a loan payment during June or July and November or December. This helps members manager their finances better during summer vacations and the holidays. Members can skip up to a maximum 6 payments for the lifetime of the loan.

Eligibility for the Program

To participate, borrowers must meet specific criteria. It’s important to check whether the loans qualify for the deferment. The Skip-A-Payment application states the eligibilty and disqualifications requirements. Typically, secured loans like car, rv or boats and unsecured personal loans are eligible. However, Line of Credits and Overdraft loans are excluded and not eligible.

How to Apply

Applying for a Skip-A-Payment is straightforward. Borrowers can fill out the form online under Products & Services then Forms & Applications to ensure their personal information remains secure. A fee of $25.00 is charged for each loan Skip-A-Payment request. Borrowers may also apply in person at the branch. Make sure you understand the cost before applying. All request need to be submitted at least 5 days before payment is due.

Benefits of Skipping a Loan Payment

Skipping a loan payment gives immediate relief from making a regular payment. This can give extra funds for vacations, holidays, or financial strain.

Things to Keep in Mind

While skipping a payment might sound like a quick fix, it’s essential to consider the impact. Here are some things to keep in mind before deciding:

• Loan Term Extension:Skipping a payment will extend the life of the loan.

• Accrued Interest:Even during the deferment period, interest will continue to accumulate. Interest is calculated at a daily periodic rate on the unpaid principal balance. This means you end up paying more interest over the life of the loan.

• Loan Coverage:Make sure skipping a payment does not affect your loan coverage. Examples: Debt Protection, Gap, DPW and warranty. Some coverage is only provided for a limited number of extensions on a covered loan or doesn’t extended to cover the skipped payments.

• Final Payment Size:Depending on your specific loan terms, your final payment might be larger than your usual installmetn if you defer a payment.

• Automatic Payments:If you have auto-payments set up, double-check to ensure that teh deferred payment will not be deducted from your account.

Making a Decision

Understanding when and why to defer a loan payment is crucial. Such programs offer valuable relief but require careful consideration of your financial situation. Assess both the immediate benefits and long-term implications before deciding if skipping a payment is right for you.

1 A skip a payment fee will be processed per the Skip-a-Payment agreement, for each skipped payment request.  You may not request two back-to-back Skip-a-Payments. If you have more than one qualifying loan, you may request to Skip-a-Payment on each loan. The processing fee(s) will be returned to anyone not eligible to participate in this offer. In order to skip your payment, all loans and accounts must be current and in good standing at the time we receive your request, and your loan must be opened for more than 6 months with 6 payments. The deferral of loan payments pursuant to this agreement will automatically extend the loan maturity date by a corresponding period of time. Deferral of payments will reduce the portion of future payments applied to principal resulting in a larger final payment, or negative amortization. Interest and any voluntary insurance premiums, if applicable will continue to accrue as usual during the deferral period. The number of Skip-a-Payments in a rolling 12-month period is limited to a maximum established by the credit union and may be subject to change. Certain restrictions apply and not all loans are eligible for this program. In some instances, it may be required that the member authorize having a credit bureau pulled for review. Subject to credit qualifications and performance. Program subject to change at any time.

2 There is a one-time Payment Extension Fee for each loan extension per the Credit Unions Fee Schedule of $25.00. Payment Extension Fee will be returned to anyone not eligible to participate in this program. The deferral of loan payments pursuant to this agreement will automatically extend the loan maturity date by a corresponding period of time. Deferral of payments will reduce the portion of future payments applied to principal resulting in a larger final payment, or negative amortization. Interest and any voluntary insurance premiums, if applicable will continue to accrue as usual during the deferral period.  Certain restrictions apply and not all loans are eligible for this program. In some instances, it may be required that the member authorize having a credit bureau pulled for review. Subject to credit qualifications and performance. Program subject to change at any time.