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A special offer for the holidays Now consider the based on real life offer I received from a local bank: Let's pretend that after exactly

A "special offer" for the holidays

Now consider the based on real life "offer" I received from a local bank:

Let's pretend that after exactly two years into the loan I get an offer to skip three months worth of car payments and it will cost me $30 to accept this offer. After we skip the three months of payments we keep on making the same monthly payment as before. The only exception to this is our last payment where we pay something less than our regular monthly payment to end the loan. The bank will keep on charging us interest during our three months of skipping payments of course because they want to make money, and they will extend our loan by a few month(s) to make up for the months we skipped.

  1. How much money will it really cost us if we do this option? I bet it will cost more than the 30$ it takes to accept the offer bc the loan is now a few month(s) longer, and I think we will end up paying more interest bc more interest is connected to more time.

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