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My bank is letting me skip a month in making my credit card payment without paying a late fee. Is this a good idea?

Last Updated: March 05, 2008

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Generally, no, unless you have unusually high unexpected expenses that demand immediate payment. Skip-a-month offers are most commonly seen around the December holiday season when people have high expenses for items such as food, gifts, and travel. Of course, there is "no free lunch." Interest charges continue to accrue when a cardholder skips a payment. In addition, because a monthly payment is skipped, there is no opportunity that month to reduce the outstanding balance on which interest is charged.

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