A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Debt SnowballA payoff strategy that clears the smallest balance first for quick wins, then rolls those payments into the next debt.
- Debt ConsolidationCombining several debts into a single new loan or payment, often to secure a lower rate or simplify what you owe.
- Extra PaymentA payment beyond your required amount that goes toward principal, cutting the total interest and time to pay off a loan.
- Minimum PaymentThe smallest amount you can pay on a credit card each month to stay current, though paying only this keeps you in debt longer.
- Interest RateThe percentage a lender charges you to borrow money, or pays you to keep money deposited, over a set period.
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Plain-English education — not personalized legal, tax, or investment advice.