Tips to Prevent Bad Debt and Delinquency

As minor as it may seem, keeping your address and phone numbers updated with the credit union is huge. IF a payment was to ever be missed and the credit union needed to reach you, we would attempt contact via phone and mail.

It is always best to have your due dates written down somewhere that you have easy access to such as using a calendar, a planner or reminders on your phone. This way you get a quick reminder to pay before missing a payment. This is important as missing just one partial or full payment could set you back unintentionally and may be difficult to bring current and get yourself back on track. The credit union does send notices in the mail, so always be sure to check items from us as it may be more than just a statement.

When taking out a loan, the Credit Union offers additional protection to you that may come in handy when you least expect it. Debt protection such as Life, Disability and Unemployment are claims that can be filed on individual loans for payment assistance. If the claim is approved, a regular payment for your loans may be made while you are off work. This can be so helpful as we all know that just because you are off work the bills do not stop. What a relief it would be to have one less thing to worry about and monthly payments made to your loans. Interested in this? You can always reach out to our amazing lending department at the Credit Union to assist you further!

If you know that you have something coming up (such as a vacation, maternity leave, unexpected time off) and you aren’t sure you will be able to make your monthly loan payment, calling ahead of time and asking about our Skip Pay option can be useful. Skip pay allows you to “skip” two payments a year and up to 6 through the life of the loan. There is a fee included in this option of $25 dollars but $25 could still leave you extra as it is less than a regular monthly payment. The payment does go on the end of the loan so you will eventually pay it, but in a pinch, you made find it helpful.

An appealing tip that not only keeps you on track but also can save you in interest is setting up Auto Payments to your loans. Auto funds transfers and ACH’s make it easy and paying weekly or biweekly saves you interest! Auto funds transfers and ACH’s can be changed per your request but doesn’t making smaller weekly or biweekly payments seem more accommodating than a large once-a-month payment? Paying once a month can also be challenging in the instance that you do miss a payment. Now you have the responsibility of making two full payments to get yourself back on track. Weekly or biweekly payments mean you could catch things up faster and with less stress attached.

Most importantly, the key to preventing bad debt or delinquency is communication. Communicating promptly allows the credit union to help YOU. If we know about things coming up, we can assist with solutions to maintain or resolve any missed payments.

Shayna Marmalick

Solutions Specialist II    

This blog is not on behalf of Peninsula Federal Credit Union.