How to Skip or Defer a Payment

The process to skip or defer a payment will vary between organizations so this guide will outline the options available to you using Bryt. 

Handling Interest
If skipping an expected payment, you will need to decide whether you want to exclude interest OR collect the interest that's accrued in the skipped pay period. 

1) Collecting Zero Interest - You can choose to collect no interest by using the modify loan button on a loan.
Example Loan: $100,000 Interest-Only, Monthly 30/360, 12% Interest ($1,000 fixed monthly payments)
You'll want to go to the 'Interest Rates' option.

Next, you'll want to click on the 'Add Interest Rate' button. 

Note: You'll only be able to change the interest rate for pay periods that are 'Open', meaning pay periods with no payments made toward them.
With that, you'll want to select the dates you want to start charging 0% interest on.
In our example, we've paid the pay period for 7/1-7/31/2022 (30/360) so we'll want to change the Interest rate to 0% starting on 8/1/2022 to collect no interest starting that day. 

We'll see that's applied in the list of Interest Rate changes, but now we'll want to return to charging the original interest rate for the September pay period, so we'll follow the same steps previously to assign 12% starting on 9/1/2022. 

You'll now see the following:

The schedule will reflect these changes to note $0 interest due for the August 2022 pay period. 

On a loan that expects to collect principal, you'll see an extra amount due at the last pay period (Since you'll be recording a $0 payment - Shown below).

You can choose to add an extension, which adds another month to the life of the loan (keep in mind the maturity date for the loan will change), or keep the higher balloon payment amount on the original maturity date.

To add an extension to the loan, return to the loan's summary and using the Modify Loan button select the 'Extensions' option. Click on the 'Add Extension' button. There is currently only one Extension Type, so that's fine as default.
The Number of Periods to Extend the Loan field will correlate to the loan's payment frequency, meaning a monthly loan's extension of 1 would be 1 month and a quarterly loan's extension of 1 would be 3 months (full quarter).
Click Save when you're done. 

That part is done, for those that want to skip interest due and apply a more 'True' deferment of an expected payment, like freezing the loan for a pay period. 

2) Outstanding Interest - 
Example Loan: $100,000 Fully Amortized, Monthly 30/360, 12% Interest
The other option you have is to not extend the loan, not change the interest rate, and record a $0 payment on the payment you'd like to 'skip'. 

Then you'll want to click the 'Enter Manually' button.

We'll go with the option to leave as outstanding to show you where you can find this after the unpaid interest is applied as outstanding interest.

Now you'll want to go to the Summary to view the Interest balance amount that was set to Outstanding Interest. 

This Outstanding Interest amount of $921.15 can either be paid through a regular scheduled payment or an unscheduled payment. If applying a regular scheduled payment, you'll want to add in the Outstanding interest funds to the due amount for a pay period to pay it all. 

Now you'll be able to see this was paid off in the Register and on the schedule under the 'Other' column.