Newsletter - Here’s How Personal Loan Deferment Works

This is your Newsletter. [LPB]( [LPL]( [LetmePayday Newsletter]( You Might Like     [Learn more about Jeeng](  [Here’s How Personal Loan Deferment Works]( [Here’s How Personal Loan Deferment Works]( Deferring a personal loan payment can relieve financial stress for a month or two, but the total cost could go up. If you can’t pay your personal loan due to financial hardship, many lenders offer short-term deferment plans that will let you extend your loan term in exchange for a break from your regular monthly payment. Temporarily pausing your payments isn’t free if your lender charges interest on deferred payments. But if you need short-term relief, deferment may be an option. What is a deferment on a personal loan? When you defer a personal loan payment, you’re not absolving yourself of those months’ payments; you’re extending the loan term by however long the deferral period is. If you defer two months’ payments, for example, those payments are tacked onto the end of your loan. Deferring a payment means you’re delaying it without violating the loan agreement. Some lenders have offered deferred payments as part of a hardship program since before the COVID-19 crisis. Others tailor their hardship offerings to borrowers’ individual needs. [[icon] Read MoreÂ](  [Get the money you need](  [Should You Take Out a Personal Loan to Pay Off Credit Card Debt?]( [Should You Take Out a Personal Loan to Pay Off Credit Card Debt?]( Paying off your credit card debt with a personal loan could make sense if you can save money on interest and avoid running up charges again. Millions of Americans are awash in debt. If you are among them, you might be tempted to take out a personal loan to consolidate your credit card debt. Doing so can make sense, but only in certain situations. Weighing the pros and cons of various payoff methods can help you choose the best strategy for your financial situation. What Is a Personal Loan? A personal loan is a lump sum of money borrowed from a bank, a credit union, or an online lender and paid back in installments, with interest, over a fixed period of time. You can generally use funds from a personal loan for whatever purpose you deem fit. Common uses might include consolidating debt, paying medical bills, and making a large purchase. Typically, you can borrow anywhere from a few hundred dollars to thousands of dollars. Your interest rate can be either fixed or adjustable, but most personal loans have fixed rates. Personal loans may also come with fees that can add to the expense of borrowing. [[icon] Read MoreÂ](  You Might Like     [Learn more about Jeeng]( Connect with LetmePayday on Social Media Pages [Facebook]( [Linkedin](    [Unsubscribe](