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
- Installment LoanA loan repaid in fixed, scheduled payments over a set term, such as an auto loan, student loan, or personal loan.
- Unsecured DebtBorrowing not tied to any collateral, such as most credit cards and personal loans, relying on your promise to repay.
- Debt ConsolidationCombining several debts into a single new loan or payment, often to secure a lower rate or simplify what you owe.
- Loan TermThe length of time you have to repay a loan in full, which affects both your monthly payment and total interest paid.
- Origination FeeAn upfront charge some lenders deduct from your loan to cover processing, reducing the amount you actually receive.
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Plain-English education — not personalized legal, tax, or investment advice.