It’s that time of year again!
We are offering Payment Deferrals for November and December loan payments for those members who qualify. Payment Deferrals are a popular benefit we offer specifically at this time of year to help members with the monetary burden the holiday season can cause. To qualify for this handy benefit, you must have made 6 consecutive monthly payments on the loan(s) you are requesting to defer. There also cannot be any payment delinquencies of 30 days or more on any of your loans with Credit union of Denver. Please note there is a $30.00 fee for each loan you would like to defer, which must be available in your Prime Share or Checking account before your request will be reviewed. Please note that mortgages, credit cards and overdraft lines of credit are not eligible. If you are interested in applying for the Payment Deferrals, you can find the form and all necessary disclosures here.
There are many positive benefits to deferring your payment. It may be just what you need to get ahead, to save some extra money, to celebrate the holidays without the stress of worrying about money or to buy that special gift that you may not have typically had the funds to afford. However, there are some consequences to being approved for the Payment Deferral that are important to note. Payment Deferrals do extend the terms of your original loan, which results in a higher total finance charge for you to pay. Your payment may be deferred for two months, but the interest on the loan is still accruing. Your first payment after the two months of Payment Deferrals may all go to interest, depending on how much interest has accrued. We have offered Payment Deferrals for several years. If you have applied and been approved for Payment Deferrals on the same loan for multiple years, your term has been extended significantly.
An alternative option to consider, instead of relying on Payment Deferrals to fund your holiday shopping, would be to open a Holiday Account. You can set up a small amount to automatically transfer into this account from your direct deposit. This account matures on the last business day of October and will transfer the funds into your Prime Share account so you can begin your holiday shopping. Using the Holiday Account to save for holiday purchases instead of relying on the Payment Deferral option will save you the $30.00 Payment Deferral fee, extra accrued interest and won’t extend the term of your loan. If you are interested in starting your Holiday Account for next year, please contact us at 303.239.1150.