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Either way, any skipped or reduced payments will be added on to the end of your repayment term, and interest will continue to accrue over those extra months. In addition, you could be charged a fee for each skipped payment. To find out your options consult your loan agreement or ask your lender.
Skip-a-payment is a program allowing members to skip a monthly loan or (with some institutions) a credit card payment without penalty during an especially tight financial season. Most credit unions offer this program during the holidays and during the summer vacation season.
In other words, a deferment allows you to temporarily stop making payments on your debt without the interest continuing to pile up. The word deferral is sometimes used in the same way. Taking this option is sometimes called deferring a loan.
Loan deferment, or forbearance, is when a lender allows you to delay repayments on a personal loan without violating the loan agreement. Typically, when you defer a loan, you extend the loan term by an agreed-upon deferral period.
If youre having trouble repaying your loans, you may consider requesting a loan deferment or forbearance: With a loan deferment, you can temporarily stop making payments. With a loan forbearance, you can stop making payments or reduce your monthly payments for up to 12 months.
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Whether you skip a full payment or make a reduced one, it is important to know that you are still liable for the outstanding balance to your lender. Your lender will add that amount to the end of your loan, during which time your account continues to accrue interest.
If youre eligible and communicate your situation to your lender in time, they may offer loan deferment as a solution to keep you from defaulting on your loan. Whether or not you can get one may depend on your lender, your loan agreement and the current status of your loan. Not all auto lenders grant loan deferments.

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