Offering an Extension

Does applying for an extension help or hinder the customer?

When applying for an extension to an account, the company agrees to take a payment or payments and put them to the back of the loan. Therefore, the customer is not getting rid of the payment/payments, but they agree to pay it later. While this may benefit the customer now, it will result in a larger balance towards the end of the loan

Things to remember before offering an extension:

  1. The payments do not disappear when an extension is applied.  The payment goes to the back of the loan.
  2. It could take longer for the customer to pay off the total balance.
  3. The customer may not be eligible for another extension when they really need it.