Many Americans live paycheck to paycheck, making it easy to fall behind on payments with a small financial upset. Personal loan deferments offer a brief break in payments, allowing time to stabilize your finances. Interest will accrue during the deferment, and payments resume once the period ends.

If you’re facing financial hardship, a personal loan deferment can provide temporary relief, allowing you to focus on other priorities and protect your credit. However, interest continues to accrue, and deferments are usually short-term solutions, not suitable for extended financial struggles. Not all lenders offer deferment options, and eligibility varies.

In addition to deferments, lenders may offer interest-only payment plans or loan modifications for long-term financial assistance. Refinancing with a new lender is an option for those with good credit. Deferments do not affect credit scores if agreed upon by the lender, but missing payments will damage credit.

Eligibility for a loan deferment varies by lender and requires a significant financial setback, such as job loss or medical bills. Other options include interest-only payments, loan modifications, or seeking help from a nonprofit credit counseling agency like NFCC.org. It’s essential to explore all options before deciding on a deferment.

Read more at Yahoo Finance: How to temporarily pause your payments