Deferral

Deferral means delaying something until a later time. It's like putting off doing your homework until later or waiting to eat your dessert until after dinner. When we defer something, we're choosing not to do it right away and instead doing it at a more convenient time.

In finance, deferral means postponing payment of something that we owe or delaying receipt of something that we're owed. For example, if we have a loan and our lender allows us to defer payments for a few months, we can delay paying back the money until a later time when we have more funds available. Likewise, if we're waiting for a paycheck or income, we could ask our employer or customer to defer payment until a later date when we need the money more.

Deferral can be a helpful financial tool, but it's important to remember that deferring payment of something usually means we'll eventually have to pay more in the future. This is because the lender or debtor might charge interest or fees for the deferral or delay, which can add up over time. So, it's important to consider the costs and benefits of deferring something before making this decision.