What does Forbearance mean?
Forbearance is basically the procedure by which certain debts may be delayed. Credit card issuers/lenders set the rules applying to forbearance issues, and the cardholder is allowed act in consequence. Bear in mind that forbearance is a short term solution: although it may facilitate you in the way your monthly payments will be reduced, however you still have to repay the debt in full. So, if say you had 10 monthly payments of $100, forbearance might help you have 12 monthly payments of about $84 which will still make out $1,000 at the end of the term. Or, given certain financial problems you might postpone your payments with 6 months: for example, if the term of the loan was 5 years, if you take advantage of forbearance, this term becomes 5 years and six months. Forbearance is actually not a measure which will reduce your loan; it stays the same, it is just that you have more time for its repayment.