HomeGlossaryDDebt TrapGlossaryDebt TrapA cycle in which a borrower repeatedly renews or re-borrows a short-term loan, paying fees each time without reducing the principal.Browse: A · B · C · D · E · F · I · L · M · O · P · R · S · T · U · W · full glossaryMore glossary termsAPRAch WithdrawalBad CreditBalloon PaymentCAPSCash AdvanceCheck CashingConsumerConsumer AdvocateCooling-Off PeriodCredit CheckDefaultDeferred DepositExtensionFDICFaxlessFinance ChargeInstallment LoanInterestLate FeeLenderLoan SharkLoan TermMilitary Lending ActOrigination FeePaycheckPayday AdvancePayday Alternative LoanPayday LoanPost-Dated CheckPrincipalRolloverSubprime LendingTitle LoanUnsecured LoanUsuryWage Garnishment