Glossary Of Debt Management & Financial Terms
Interest
The cost of borrowing or lending money - usually a percentage of the amount borrowed or loaned.
The money paid on top of what was borrowed to pay for the lending facility. This is usually worked out in two ways; fixed term loans, where the interest is included into the total outstanding balance when the loan is first taken out and the debt is set to run over a set term. Or through an ongoing credit facility, such as a credit card, where the interest is applied throughout the course of the borrowing, in the case of credit cards, the borrowing facility could be continuous until the debtor pays off the total remaining.
See Interest Rate, Credit Card, Unsecured Loan and Debtor.
