payment deferral

**Payment Deferral**

A payment deferral is an agreement between a borrower and a lender to temporarily postpone scheduled payments on a loan or debt. This option is typically used to provide financial relief during times of hardship, allowing the borrower extra time to manage cash flow without facing penalties or default. Payment deferrals can apply to various types of payments, including loans, mortgages, credit cards, and other financial obligations. Understanding how payment deferral works, its terms, and potential impact on interest and credit is essential for making informed financial decisions.