Deferment Period
When you get those skeezy marketing pitches for credit cards...you know, the ones from a retailer where there are no interest payments for the first 6 months...those 6 months are considered to be in the deferment period.
Student loans and new mortgages typically have deferment periods, in addition to credit cards. That is, interest on those loans is deferred for 6 months.
Note the keyword here in "deferred"—not "forgiven." The interest just accumulates and you pay it later, not now. But you still pay it. Sorta the same way contributions you make into your 401(k) are tax-deferred, not tax-forgiven. Defer too long and you risk forgetting those big IOUs. Bad things happen.
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Finance: What is Deferred Compensation?8 Views
Finance allah shmoop what is deferred compensation Well you don't
get it today You get it next year at some
point you know differed If you've gotten paid today it
would have binford but then it was deford's so well
yeah it's money you don't get right now Yeah so
whywould compensation be deferred Well lotsa reasons think about a
bonus that a sales person might earn through out the
year like they get two grand in bonus money payable
next year for each month that they sell over four
pounds of yellowcake uranium powder Bob here did it in
january messed around in february and march and was a
good boy in april may and june and then on
lee hit one more sales goal ahead of christmas doing
four pounds in uzbekistanian november So bob had five months
hitting his sales bonus target and we'll have owed to
him ten grand in bonus money e compensation that was
deferred and noting that all bonuses are paid in january
of the following year like it's deferred to the following
year So from the company's perspective they show deferred compensation
as a line item or a thing on their balance
Sheet is a liability And then they converted to being
an expense when they pay everything out the first month
of the next year so come january Bob will be
very happy with his healthy bonus That is you know 00:01:29.357 --> [endTime] assuming he's still around to enjoy it there No
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