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
- Charge-OffWhen a lender writes off a debt as unlikely to be repaid, usually after months of missed payments, while you still owe it.
- CollectionsThe process of a creditor or a hired agency pursuing an unpaid debt, which appears as a negative mark on your credit report.
- Debt ConsolidationCombining several debts into a single new loan or payment, often to secure a lower rate or simplify what you owe.
- DefaultThe failure to repay a debt as agreed after an extended period, which can lead to collections, legal action, or repossession.
- Credit CounselingGuidance from a nonprofit advisor who reviews your finances and can help set up a plan to manage or repay debt.
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Plain-English education — not personalized legal, tax, or investment advice.