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#1084887 - 11/20/08 03:09 PM Loan deferment
Banana Offline
Junior Member
Banana
Joined: Sep 2008
Posts: 44
Texas
Does anyone know how defering a loan payment affects your credit? My husband just lost his job today, and my car loan is one of our biggest expenses. I thought if I could defer that payment it might help balance things out a little bit for this month. I know there is generally a fee involved in doing that, but it seems that it would be cheaper than the OD fees on my account if I try to pay everything. My only concern is how this would be reported on my credit. Any help would be greatly appreciated.
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#1084900 - 11/20/08 03:23 PM Re: Loan deferment Banana
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
A Payment deferral/extension should not adversely affect your credit...however, check into the cost. If you have a fee plus the interest, you may not really be defering much!
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#1084986 - 11/20/08 04:33 PM Re: Loan deferment RR Joker
Banana Offline
Junior Member
Banana
Joined: Sep 2008
Posts: 44
Texas
I will definitely have to look at the fees that go with it. But considering the amount of my payment, it's the only option I can come up with until the hubby finds another job. Thanks for easing my mind about the credit issue though. I don't want to jeopardize my credit rating after I have worked so hard to get it built up.
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If life is a stage, I want to control the trapdoor.

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#1085545 - 11/21/08 01:39 AM Re: Loan deferment Banana
Blessed Offline
Diamond Poster
Blessed
Joined: Oct 2007
Posts: 2,390
USA
Our bank offers a "Holiday" skip a pay... It costs $50, and you can either pay up front or add it to your principal... Maybe your institution offers something like that...???
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#1088452 - 11/26/08 04:33 PM Re: Loan deferment Blessed
Banana Offline
Junior Member
Banana
Joined: Sep 2008
Posts: 44
Texas
Contacted the financial institution and they refused to give me an extension on the payment. They said that my situation did not fit for an extentsion. GRRRR!!! Have to look at other options, but I'm not sure what those might be.
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If life is a stage, I want to control the trapdoor.

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#1088482 - 11/26/08 04:51 PM Re: Loan deferment Banana
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
Banana, please don't take this the wrong way, because I am in your same situation (my hubby was laid off at the end of September, and we've had to really tighten up the budget). It sounds like your car may be more of a burden then it is worth. Have you considered selling it and getting something more affordable? I don't know if it is even feasible to sell a car in this economy, but it may be a tough choice you have to make.

As for other options, if future months aren't as tight as this one, you could put all of your groceries on the credit card, providing you can pay for them when the bill arrives. That could provide some immediate cash flow relief right now. You could also do this with other bills you pay with a check (utilities, gas, phone, etc). You could put them on your credit card and create a very short term extension for yourself. Also, if you are eating out at all, stop! We were blowing an embarassing amount of money eating unhealthy, over-portioned meals prepared by someone else. It took some time to get used to, but we really enjoy cooking in now, and I brownbag the leftovers. I make up the menu for the month ahead of time, and schedule easy to make meals a few nights a week for hubby to make. It has turned out well. Of course other committments demand that we have a meal out now and then, but we now share meals and use coupons. It has made a real difference!

Just some suggestions! Good luck!

P.S. This may go without saying, but has your hubby filed for unemployment yet?
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#1088541 - 11/26/08 06:03 PM Re: Loan deferment RebekahL CRCM
Banana Offline
Junior Member
Banana
Joined: Sep 2008
Posts: 44
Texas
I don't take it the wrong way at all. We have considered selling it (as much as I love it!) but it is an SUV and those are not great for resale right now. I'm not sure that we would be able to get what we owe on it, even just to break even. I would gladly at this point get something that would require a lower payment.

We hardly ever eat out. I would much rather cook at home. We have been on the road alot the last several nights, even then we have sandwiches or cereal at home, something quick and inexpensive. When I am actually able to make a hot meal, I make extra to bring to work the next day for lunch, or for us to reheat for dinner the next night. (Chili or beans and rice will feed us for days!)

He went and filed for unemployment the day he was fired, but they have not let him know anything. He actually had an interview yesterday and was offered a job, but he will not start until Dec. 8 which means no paycheck until the middle/end of December. Our department found out today that due to the failure and subsequent buyout of our bank, we will not have jobs much longer. (no date yet) So now I am on the hunt for something, and hopefull will be able to get something before we are let go here. Every day is something new!
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If life is a stage, I want to control the trapdoor.

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#1088565 - 11/26/08 06:22 PM Re: Loan deferment Banana
MichelleDawn Offline
Power Poster
MichelleDawn
Joined: Feb 2005
Posts: 5,994
I have no advice, but I just wanted to let you know how much I feel for you. I've only been working part-time since January and have been unable to find anything new. It is so stressful and I live alone so there is no one to depend on but me. Keep your chin up and just remember that eventually it all will work out.
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#1088596 - 11/26/08 06:53 PM Re: Loan deferment MichelleDawn
RebekahL CRCM Offline
Platinum Poster
RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
Oh man, I'm so sorry to hear about your job too! It sounds like you have a good attitude, and you are doing everything you can to keep your heads above water. I'm glad to hear your husband found something pretty quickly, especially with the awful news you got from your employer. That really stinks, especially so close to the holidays. I hope you are able to still enjoy Thanksgiving, in spite of the setbacks.

Hang in there, I hope you find something quickly!
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