Deferral 意味: The Ultimate Guide to Deferring Taxes and Saving Money

Deferring payments 意味 to postpone them to a later date. This can be done with taxes, loans, and other financial obligations. There are many reasons why someone might want to defer payments, including:

• To improve cash flow
• To reduce the amount of interest paid
• To qualify for a lower interest rate
• To take advantage of tax breaks

How Deferrals Work

When you defer a payment, you are essentially borrowing money from the lender. The lender will charge you interest on the amount borrowed, and you will repay the loan according to the terms of the deferral agreement.

The length of a deferral can vary, but is typically between 3 and 12 months. During this time, you will not have to make any payments on the loan. However, interest will continue to accrue, so you will end up paying more interest in the long run.

Types of Deferrals

There are two main types of deferrals:

• Payment deferrals allow you to postpone making payments on a loan.
• Interest-only deferrals allow you to continue making payments on the interest, but defer the payments on the principal.

Benefits of Deferrals

Deferrals can provide a number of benefits, including:

• Improved cash flow: Deferrals can help you improve your cash flow by reducing the amount of money you have to pay each month. This can be helpful if you are experiencing financial difficulties or if you have other expenses that you need to pay.
• Reduced interest payments: If you defer payments on a loan, you will pay less interest over the life of the loan. This is because you will be paying interest on a smaller amount of money.
• Qualification for lower interest rates: Deferrals can help you qualify for lower interest rates on future loans. This is because lenders view borrowers who have a history of making on-time payments as less risky.

Common Mistakes to Avoid

When deferring payments, it is important to avoid the following mistakes:

• Deferring too much: Deferring too many payments can lead to you owing more money in the long run. This is because interest will continue to accrue on the deferred payments.
• Not understanding the terms of the deferral: Before you defer payments, be sure to read and understand the terms of the deferral agreement. This will help you avoid any surprises down the road.
• Missing payments: If you miss a payment on a deferred loan, you could default on the loan. This can damage your credit score and make it more difficult to get loans in the future.

Deferrals and Taxes

Deferrals can also be used to defer taxes. This can be done by contributing to a retirement account, such as a 401(k) or IRA. When you contribute to a retirement account, the money is not taxed until you withdraw it. This can help you save money on taxes now and in the future.

Conclusion

Deferrals can be a helpful tool for managing your finances. However, it is important to use deferrals wisely to avoid the potential risks. By following the tips in this article, you can use deferrals to improve your cash flow, reduce your interest payments, and qualify for lower interest rates.

Additional Information

• The IRS allows you to defer taxes on up to $19,500 in contributions to a 401(k) plan in 2023.
• The IRS allows you to defer taxes on up to $6,500 in contributions to an IRA in 2023.
• Deferrals can also be used to defer capital gains taxes. Capital gains are the profits you make when you sell an asset, such as a stock or bond.
• Deferrals can be a complex topic. If you need help understanding deferrals, consult with a financial advisor.