Skipping a payment is probably the last financial advice you expect to receive from a lender. But that’s exactly the solution Vibrant Credit Union is offering to consumers who are struggling to make ends meet due to record fuel and food prices.
The credit union said it will suspend monthly auto loan payments for 90 days for any consumer who switches their loan to Vibrant by Aug. 31, according to a company statement Monday. Additionally, once borrowers resume their payments, Vibrant promises that they will keep the same monthly payment they were paying before.
“People are struggling right now through no fault of their own,” Matt McCombs, president and CEO of Vibrant, said in the statement. “It’s safe to say that if you bought a vehicle more than six months ago, you never imagined you’d be paying $75 every time you fill it up.”
McCombs hopes lower prices are on the horizon and the temporary relief of not having to pay for a car will help many families get by until inflation subsides.
“We estimated that the average borrower pays about $563 per month for their car loan,” he said. “That’s $1,687 more that they will have to spend in the coming months on school clothes, utility bills and groceries. It’s frustrating to see so many hard-working people struggling financially right now,” McCombs said. “If suspending someone’s car payments means they’ll be able to sleep better at night, that’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 over $1 billion in assets through its branches in Iowa, Illinois and Indiana.