The Money Mustache Community
Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: Philociraptor on November 10, 2014, 06:22:09 AM
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From my credit union this morning, "Have more fun this month (or any month you choose), and skip that payment!" (Attached image)
Because not paying down debt and spending money absolutely equals fun.
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Do they skip the interest for a month as well?
If not, hell no! That is what you're trying to escape.
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And they charge a fee for the privilege. I got them for my car loan before. Somehow I don't think the banks have our best interests at heart with these offers.
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As much as I love credit union's over banks, they still promote terribly irresponsible behavior. One that my own credit union does is promoting members to cash out equity and take out loans on cars they already own. Now I have to go find an actual advertisement from them...
(http://sparkcreativeads.com/spark2013/wp-content/uploads/2014/01/spark-creative_campaign-MSGCU-gas-topper.jpg)
Makes me sick every time I see it.
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I worked for several credit unions before moving into financial behavior education.
Skip-a-payment was offered at each credit union especially around the holidays. Payments are usually just deferred until the end of the term. So not only will you pay more interest on the simple interest loan but they usually require a fee ($25 for each loan you skip in my experience).
These programs are huge money makers and included as an income line item in the credit union's budget each year. A line item just like the money they expect to collect in account transfer and overdraft fees for the year.
If you turn that $25 fee into part of the total finance charge I am sure it has a significant impact on the overall cost of the credit. I just never did the math myself.
The only good side is that you will see most of this income returned to the overall membership in the form of dividends or new products. My last credit union specifically used the skip-a-payment income to offer a whole new online banking platform that the members had been requesting for some time.
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I worked at a credit union that does this- and WAY too many people took "advantage" of the "opportunity". The only "good" part of my particular credit unions version is that, while they put a $25 fee on the loan, it was paid off at the end and did not accrue interest.
The skip pay was at least helpful for trying to help habitually late members catch up and stop paying the late payment fee... that only rarely helped for long though.
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"I finally paid off my 67-month loan for my used car! Time to take out another loan on the same car, so I can buy a TV!"
This does sound like something the average American would go for.
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My bank sends me those "Skip a car payment for $79" opportunities all the time.
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I'm missing out on the fun by not having any loans.
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I'm missing out on the fun by not having any loans.
Not paying is the fun part. You're doing it right.
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I'm missing out on the fun by not having any loans.
It's okay, I can help. I will loan you $100. Then you loan me $100. And then each month we can both skip the payments so we both get to be part of the fun game.
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As much as I love credit union's over banks, they still promote terribly irresponsible behavior. One that my own credit union does is promoting members to cash out equity and take out loans on cars they already own. Now I have to go find an actual advertisement from them...
Makes me sick every time I see it.
From my credit untion. Apparently balancing a budget to include annual expenses is hard.
(http://i.imgur.com/l5sfAxT.png?1)
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I know many people here swear by their local CU, but in my limited and very local experience, their value proposition sucks. It seems to always revolve around "we're not a big bad bank" and "look at this gimmick that we created just because we know life is hard when you make dumb decisions".
I must not be cool enough to be admitted to the good ones. :(
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I learned a lot of my financial skills from working at one point for a credit union. The things we had to do for that job were absolutely awful. I was ordered to get lots of people to take out home equity loans with the incentive that they could use the funds to get a backyard pool or other frivolous crap. I feel pretty bad these days about how I contributed to the financial crisis of 2008.
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I learned a lot of my financial skills from working at one point for a credit union. The things we had to do for that job were absolutely awful. I was ordered to get lots of people to take out home equity loans with the incentive that they could use the funds to get a backyard pool or other frivolous crap. I feel pretty bad these days about how I contributed to the financial crisis of 2008.
S you're the one person we can blame! Everyone, get your pitchforks!!
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I know many people here swear by their local CU, but in my limited and very local experience, their value proposition sucks. It seems to always revolve around "we're not a big bad bank" and "look at this gimmick that we created just because we know life is hard when you make dumb decisions".
I must not be cool enough to be admitted to the good ones. :(
Like many other things, you just have to use it to your advantage and not fall for the marketing stuff. I've gotten several "holiday gifts" of allowing me to skip a car payment for the low, low price of $29. I guess it doesn't matter that I don't owe a payment until March (and the loan will be paid in full that month, years ahead of schedule, coincidentally).