What is another word for add-on interest?
Pronunciation: [ˈadˌɒn ˈɪntɹəst] (IPA) 
Add-on interest is an additional fee charged to a borrower by a lender on top of the loan amount. This fee can quickly add up over time, making it difficult for borrowers to pay off their loans. So, it is essential to understand this concept fully to avoid being caught in a debt trap. There are several synonyms used for add-on interest, including composite interest, cumulative interest, fixed-rate interest, and simple-interest loans. By understanding the different terms used for add-on interest, borrowers can better negotiate loan terms and avoid costly debt traps. While these terms may seem intimidating, borrowers can easily understand them with the help of online resources and financial experts.
