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
- RepossessionWhen a lender takes back collateral, such as a car, after you default on a secured loan tied to that property.
- DefaultThe failure to repay a debt as agreed after an extended period, which can lead to collections, legal action, or repossession.
- Secured DebtBorrowing backed by collateral, like a house or car, that the lender can take if you fail to repay the loan.
- CollectionsThe process of a creditor or a hired agency pursuing an unpaid debt, which appears as a negative mark on your credit report.
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Plain-English education — not personalized legal, tax, or investment advice.