Budgeting
Another name for a budget.
What is a spending plan?
Paying off the smallest debts first and then applying that money to pay off the next debt so it builds over time.
What is the snowball method?
A flat tire.
The amount you owe.
The number used to determine how much a lender should give you. It is a record of your trustworthiness to lenders.
What is a credit score?
Child support, earned wages, and social security benefits are examples of this.
What are income sources?
Paying off debt with the highest interest rate first so you save more money overall?
What is the avalanche method?
An amount of money put aside to help with unexpected situations.
What is an emergency savings?
A contractual agreement when the borrower receives something of value and agrees to repay the lender - generally with interest.
What is credit?
FICO score
This occurs when expenses exceed income.
What is a deficit?
Something only a lawyer can recommend.
What is bankruptcy?
Something you get to protect you from large financial losses.
What is insurance?
An estimate of income and expenses for a set time.
What is a budget?
A perfect credit score
What is 850?
These should guide your decisions when creating your budget.
What are financial goals?
Service where your debt is negotiated with lenders to pay off in 3-5 years.
What is debt management?
A financial product that allows you to deposit money and earn a small portion of interest on it.
What is a savings account?
A revolving line of credit you keep in your wallet.
What is a credit card?
Experian, Equifax, and Transunion
What are the three credit bureaus?
Spreadsheets, apps, paper forms, and computer programs.
What are budgeting tools?
While working with this type of company you stop paying all debts to demonstrate inability to pay which ruins your credit.
What is debt settlement?
A financial product used to keep 3-5 months worth of income in for larger emergencies or life changes.
What is a contingency fund?
An amount of money you put away with the intention of keeping for emergencies or as a safety net.
What are savings?
How much revolving credit being used.
What is credit utilization?