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| What does Deferred Interest mean?
Deferred Interest stands for the loan where the customer pays the same amount of money but the interest changes and the contract doesn't cover it so the difference is added on the loan. In professionals terms it's also called negative amortization.
For example you have taken out a loan and your paying periodically £500 and because the interest rates changes you should be paying £600 but the contract says the previous sum then the difference is added on your debt. | | | | |
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