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
- Payday LoanA small, short-term loan with very high fees meant to be repaid by your next paycheck, often trapping borrowers in repeat debt.
- 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.
- 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.
- DefaultThe failure to repay a debt as agreed after an extended period, which can lead to collections, legal action, or repossession.
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Plain-English education — not personalized legal, tax, or investment advice.