# Forbearance

*Borrowing & Credit — Finicade finance glossary*

Forbearance is a lender's formal agreement to pause or reduce payments temporarily during hardship, without treating you as delinquent. The critical detail is what happens to the interest: in most forbearances it keeps accruing and is added to the balance, so a six-month pause makes the loan bigger, not smaller. Also confirm how the paused payments come back — spread over the remaining term, or as a lump sum at the end, which is a very different outcome.

**Also known as:** payment holiday, payment pause, mortgage forbearance

**Related terms:** [Deferment](https://finicade.com/glossary/deferment), [Loan Modification](https://finicade.com/glossary/loan-modification), [Delinquency](https://finicade.com/glossary/delinquency), [Student Loan](https://finicade.com/glossary/student-loan), [Mortgage](https://finicade.com/glossary/mortgage)

Source: https://finicade.com/glossary/forbearance