A deferment fee is a cost incurred by the borrower or debtor for the privilege of postponing payment or settling a debt. Creditors or lenders may charge a fee to cover the time value of money and other administrative costs incurred when a payment or settlement is delayed beyond the original due date. This cost may dissuade borrowers or debtors from requesting more time to repay their payments. A deferment fee is a charge for extending the due date of a financial obligation, such as a loan, credit card, mortgage, or installment plan.

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