Legal Definitions - deferred payment

A deferred payment is when a payment that is supposed to be made now is postponed to a later date. This means that instead of paying the full amount at once, the payment is split into smaller installments that are paid over time.

• When you buy a car, you may be able to make a down payment and then defer the rest of the payments for a few months.
• If you take out a loan, you may be able to defer the payments for a certain period of time, such as six months.

These examples illustrate how deferred payments work. Instead of paying the full amount upfront, you can split the payments into smaller amounts that are paid over time. This can make it easier to manage your finances and budget for the payments.