In the event the collateral is really worth less than the outstanding financial debt, the borrower can still be accountable for the remainder of the personal debt.
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Deferment Period: Meaning, Overview, Programs The deferment interval can be an agreed-on time through which a borrower doesn't have to pay for desire or principal on the loan, such as with a student loan.
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The Rule of 78 methodology presents extra weight to months in the sooner cycle of the loan, so a better part of desire is compensated previously.