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
- Balance TransferMoving debt from one credit card to another, often to take advantage of a lower promotional interest rate.
- Personal LoanA lump-sum loan, usually unsecured, repaid in fixed installments and used for anything from debt consolidation to big purchases.
- Debt Management PlanA structured repayment arrangement, usually set up through a credit counselor, that consolidates payments and may lower rates.
- Debt AvalancheA payoff strategy that targets the highest-interest debt first while paying minimums on the rest to reduce total interest.
- Debt SnowballA payoff strategy that clears the smallest balance first for quick wins, then rolls those payments into the next debt.
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Plain-English education — not personalized legal, tax, or investment advice.