In a debt deferment arrangment you agree to make payments at a later time. You are deferring the payment until you can afford it.
For example, if you have trouble making your car payment this month, you could ask the lender to defer the payment until a future month, when you have the cash to make the payment. Many lenders will agree to this, since they do not want to lose a good customer.
Of course by deferring a payment you are delaying the inevitable, so you should only defer a payment if you know you will have the cash to make the payment when it comes due. If you will, debt deferment is often a good alternative to bankruptcy.
Posted by Editor Bankruptcy Alternatives @ 3:41 pm