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
- Title LoanA short-term loan secured by your vehicle's title with steep costs, letting the lender take the car if you do not repay.
- Unsecured DebtBorrowing not tied to any collateral, such as most credit cards and personal loans, relying on your promise to repay.
- APR (Annual Percentage Rate)The yearly cost of borrowing money on a loan or credit card, stated as a percentage that includes interest and certain fees.
- Predatory LendingUnfair or deceptive loan practices that trap borrowers with excessive fees, high rates, or terms designed to cause default.
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Plain-English education — not personalized legal, tax, or investment advice.