How Does Personal Loan Deferment Work? Understanding Your Options and Costs

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What is personal loan deferment?
When is personal loan deferral a good option?
When to avoid deferment?
Calculate the cost of deferring payment
How to defer personal loan payments
- Contact your lender. Reach out to your lender to discuss deferment options. Lenders aren’t required to offer deferment, but most will consider some type of short-term payment relief. It’s in their interest to work out a plan with you, rather than sending your account to collections.
- Provide supporting evidence. Lenders may ask for documents or proof of hardship. Depending on your circumstances, providing recent bank statements, tax returns, unemployment or disability benefit statements, a job termination letter, medical bills, a divorce or separation agreement, or a death certificate could help bolster your case.
- Prepare for a deferment decision. Lenders may not approve hardship applications instantly, so be prepared to maintain your loan in good standing while the lender considers your situation.
How does loan deferment affect your credit?
Alternatives to deferment during financial hardship
Article sources
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- 12. The Pew Charitable Trusts. Payday Loans Cost 4 Times More in States With Few Consumer Protections. Accessed Apr 4, 2025.
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