Planning on Payments

A study shows many Americans are using payment deferral plans

The pandemic has made life pretty difficult. You should be taking advantage of any help you can right now. According to a recent study, Americans are doing just that.

The report asked more than 2,700 adult Americans if they are currently, or were at any time, using a payment deferral program because of Covid-19. About 26 percent of the respondents said they were or had previously participated in one of those plans. The number one most often used deferral plan was for mortgage/rent, followed by credit cards.

The study revealed that while many Americans are using deferral plans, a vast majority — about 74 percent — are not. Hopefully this is because most people are still on solid financial ground. However, as CNBC points out, another reason people might not be using these programs is that they can be confusing. Here are some things to keep in mind when attempting to use a deferral payment plan:

  • Know the details. Read through all the fine print so you know exactly what the plan entails. Make sure you have the offer in writing.
  • Remember it is temporary. A deferral is just like pressing “pause” on your payments. Eventually, you will have to start the payments again.
  • Make a plan. Make sure you have a strategy for when the deferral program ends. You don’t want to get caught off guard and end up right back where you started.
  • Chris O'Shea

    Chris O'Shea