Skipping a payment is probably the last piece of financial advice you’d expect to hear from a lender. But it’s exactly the solution Vibrant Credit Union is proposing for consumers having trouble making ends meet right now because of record-high gas and food prices.
The credit union says it will pause monthly auto loan payments for 90 days for any consumer who moves their loan to Vibrant by August 31, according to a company release Monday. Further, once borrowers resume payments, Vibrant promises they’ll keep the same monthly payment they were previously paying.
“People are struggling right now through no fault of their own,” Matt McCombs, Vibrant’s president and CEO, said in the release. “It’s safe to say that if you bought a vehicle more than six months ago, you never dreamed you’d be paying $75 every time you fill up.”
McCombs has hopes that lower prices are on the horizon and that the temporary relief of not owing a car payment will help many families get by until inflation eases.
“We figured that the average borrower pays about $563 a month toward their auto loan,” he said. “That adds up to $1,687 more they’ll have to spend in the coming months on school clothes, utility bills, and groceries. It’s frustrating to see so many hard-working people with financial worries right now,” said McCombs. “If pausing someone’s car payments means they’ll be able to sleep better at night, it’s absolutely the right thing for Vibrant to do.”
To learn more about how you can move your auto loan and skip your next three payments, click HERE.
Vibrant Credit Union serves more than 55,000 members and holds more than $1 billion in assets through its branches in Iowa, Illinois, and Indiana.