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
- DefermentA temporary pause on loan payments, often for school or hardship, during which interest may or may not keep building.
- Interest CapitalizationWhen unpaid interest gets added to your loan principal, so future interest is charged on a larger balance.
- Student LoanMoney borrowed to pay for education, offered by the government or private lenders, repaid with interest after school.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
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Plain-English education — not personalized legal, tax, or investment advice.