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Forbearance

Debt, arrears & collections
Temporary relief or flexibility granted by a lender during financial difficulty.

Overview

Forbearance can include reduced payments or pauses.

Terms are agreed with the lender and may be recorded.

Why it matters

  • It can help avoid missed payments.
  • It may affect how lenders view your profile.
  • It is usually temporary.

FAQs

Does forbearance affect my credit score?

It depends on how it is reported. It may still be visible to lenders.

Is forbearance the same as a payment holiday?

It is similar, but terms vary by lender.

Related terms

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