If you’re struggling to keep up with your bills and loans, you have options. Depending on your loan, your lender may have a financial hardship plan available to make your payments more manageable. Every lender and product is a little bit different. At first glance, it may seem confusing, but don’t let that stop you from reaching out for help. Below we break down loan forbearance, a popular loan accommodation option, so you can feel more prepared when you talk to your lender.
What is forbearance?
Forbearance is a type of financial accommodation that may be offered by a lender. It often describes a temporary change in payment terms for your account. This change can be negotiated with your lender and may include suspended or reduced payments.
Lenders may offer payment alternatives to financially strapped customers on student loans, mortgages, car loans, credit cards and personal loans, among others.
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