exorbitant interest
Usurious lending terms
Exorbitant interest is interest charged at an unreasonably high rate, typically on loans.
The phrase implies exploitation—lenders taking advantage of borrowers' desperation or ignorance: The payday lender charged exorbitant interest that trapped customers in cycles of debt.
Laws against usury attempt to cap what qualifies as exorbitant, though definitions vary by jurisdiction.
- usuryExtortionate money lending
- financial stressTension from monetary difficulties
- payday loansShort-term high-interest borrowing
- cash advanceBorrowed funds before payday
- poverty trapsSelf-perpetuating economic hardship
hidden fees · fine print · loan sharking · loan · consumer protection laws · economic inequality · debt spiral · loan default · predatory lending · annual percentage rate · wealth disparity · credit score · deceptive practices · credit card debt · bills · pay day · fiduciary duty · regulatory oversight
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