What is a partial payment?

Partial payment concerns a payment made in an account for less than the total amount due. This does not apply to periodic, planned payments. As long as these payments are made in full amount required by the creditor, they are not considered partial, even if they do not pay the entire loan at the same time. Instead, there is a partial payment when the creditor is sent smaller than the required amount. This can be sanctioned by the creditor as a way of settling an account and falling through the remaining part, often through a court trial. It can also be simply a debtor's choice, although one that usually has negative consequences.

The individual can make a partial payment for a monthly account, for example, if he simply does not have the money to repay the full amount due. The remaining balance will be transported to the next month's account, usually with other late fees and even interest, depending on the time when the account is unpaid. It can be more harder to pay the account next month but some people just have no choice and youOhou payment make in full. If it continues, for example, services for services, the company can eventually refuse the service.

Another common occurrence is when a partial payment made to settle the pending account. This can be best illustrated by an example. For example, if an individual owes a $ 15,000 credit card (USD), he could offer a one -time part of $ 12,000 to settle the account. If the Company agrees with credit cards, it means that it has decided to fail a $ 3,000 difference in the interest of receiving at least part of the amount due. Some credit card companies will agree to this, while in other cases it will require a court.

We usually deal with a partial payment like this, is done only in extremeococity, for example, if the account has been delicious for a long time or is an individual for a longer period of timeemployed. It is assumed that if an individual declares bankruptcy, the credit card company does not have to get anything, so it is best to settle for a smaller amount and to enforce the remaining debt before falling through the entire balance. However, each situation is different and one should not assume that all creditors will accept it in every situation.