Many of you are writing in to tell me that your lenders have contacted you with offers to temporarily suspend your monthly loan payment during this recent crisis. A common question I get is from people who still have the income to continue making the payments, but are wondering if it makes sense to suspend the payments anyway.
It depends.
The key consideration is how the lender expects you to make up for the skipped payments. Some expect you to make a big “balloon” payment in a few months. For instance, you can suspend payments for three months, but then you are expected to repay all that money quickly. That doesn’t strike me as any sort of deal worth considering.
The other scenario is that you can suspend your payments and then however many months you didn’t pay will be added to the back end of your loan. For instance, if your loan was scheduled to be paid off in May 2025 and you skip 3 months now, those 3 months will be added to the end of your loan, so your final payment would now be due in August 2025.
That’s a deal worth considering if you don’t yet have an eight-month emergency savings fund. How great would it feel to skip your monthly mortgage payments for a few months and put all that money in savings?
Top Resources for You
The Ultimate Retirement
Guide for 50+
Learn More 
MUST HAVE® Documents
Online Program
Learn More 
9 Steps to Financial
Independence Online Course
Learn More Related Articles
