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Emergency

Suspending a loan installment: deferral in case of payment problems

Anyone who temporarily cannot manage the loan installment due to job loss, illness, or other circumstances should become active early. Banks often offer solutions such as a deferral or repayment break. What is important is to seek the conversation before payments fail.

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Your chances of getting your money back

Banks can agree to a temporary suspension or adjustment of the installments, for instance through a deferral, repayment break, or extended term. There is usually no claim to this, but often room for negotiation.
Anyone who approaches the bank early avoids dunning costs, a cancellation of the loan, and negative SCHUFA entries. An amicable solution is better for both sides than a payment default.

What you should do now

  1. 1

    1. Disclose the situation

    Describe your temporary payment difficulty to the bank early and honestly.

  2. 2

    2. Propose a solution

    Propose a deferral, repayment break, or a lower installment.

  3. 3

    3. Agree in writing

    Have the agreement confirmed in writing, including the consequences for interest and term.

  4. 4

    4. Use advice

    In case of permanent overload, seek out debt counseling.

How to spot the scam

  • You simply let installments bounce without informing the bank.
  • The deferral strongly increases the total debt through accruing interest.
  • A temporary overload turns into a permanent over-indebtedness.

Frequently asked questions

Can I suspend my loan installment?

With the bank's consent, yes. Possible are, for instance, a deferral, a repayment break, or a temporarily lower installment. There is usually no general claim to this, but banks are often willing to talk if you approach them early.

What does a deferral cost?

During the deferral, interest generally continues to run, so that the total costs and often the term increase. Have the financial consequences shown to you precisely and confirmed in writing before you agree to a suspension.

What if I cannot pay permanently?

Then a short suspension is not enough. Turn to a recognized debt counseling service, which looks for solutions together with you and the creditors. Early action prevents cancellation, enforcement, and a worsening of the situation.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.