Need Help with a Math Problem

[Rafiki Rafiki Rafiki]

OK. Our credit union sent us a note today offering for us to skip our December payment on our car note...the note would continue to accrue interest and everything would stay the same with the note--it would just mature one month later.

Would it make sense to skip the payment and then make a principal reduction in the month of January for the same amount...or pay the equal amount on a higher rate debt?

The payment is $639. The interest rate is 4.75%. The term was 72 months beginning on 7/5/2003. The original amount financed was 39888.37.

What are the pros and cons of doing this?

 

[ioahulk]

OK. Our credit union sent us a note today offering for us to skip our December payment on our car note...the note would continue to accrue interest and everything would stay the same with the note--it would just mature one month later.

Would it make sense to skip the payment and then make a principal reduction in the month of January for the same amount...or pay the equal amount on a higher rate debt?

The payment is $639. The interest rate is 4.75%. The term was 72 months beginning on 7/5/2003. The original amount financed was 39888.37.

What are the pros and cons of doing this?

Was there any sort of fee involved to skip the December payment?

 

[Rafiki Rafiki Rafiki]

$25 is the fee....