Reading Time: 2 minutes

Skip Payments Now and Catch Up Later?

When it feels like there are 200 days between your December paycheck and your January paycheck you may begin to contemplate skipping payments now and catching up later. Is this a good idea and how soon will you be back on track?

Good Intentions

If you have faced the heavy bills that come with December holidays and the start of a new school year you may find that you will not have enough money to pay all your credit providers and cover your running costs.

In this situation, you may now be contemplating which of your credit providers you will pay and which you will skip payments to. Many have good intentions to catch up payments as soon as you can (for example in February).

Harsh Truths

Research shows that, on average, it takes people who skip December payments two years to catch up. This is according to information recently released by debt counselling firm Debt Busters. This is because although people often intend to make up the payment get hit by even more bills in February and then March and so on. 

‘Research shows that, on average, it takes people who skip December payments two years to catch up’

Debt Counsellors rather recommend that consumers try to pay all their debts in January if possible by cutting back on personal spending and careful shopping. If that is not possible, it is often better to pay something to each credit provider rather than miss payments totally.  In this case, consumers usually prioritise full payment to vehicle finance and home loans. This will ensure that these assets do not face possible repossession.

Get Help

If you are not sure how you would manage that, then talk to a Debt Counsellor who is registered with the National Credit Regulator (NCR). They will be able to discuss both your budgeting and your debt payments with you. They may feel that debt review is one possible long term solution that will take the pressure off and allow you to cover monthly needs and still pay back your credit providers over time.

If you are already in debt review and face payment challenges, then speak to your Debt Counsellor as early in the month as you can. This will allow them (and yourself) time to take steps to ease the pressure.