Type of Debt
Money that is owed as a borrower to a lender
What is debt?
Outlining income and expenses, distinguishing between essentials and discretionary spending, to understand financial limitations and prevent unnecessary spending leading to debt
What is a budget?
Short-term unsecured loan, often characterized by high interest rates
What is payday alternative loans?
Assist in setting up manageable repayment plans, negotiating lower interest rates, or restructuring debts for affordability
What is debt repayment plans?
If you receive money to buy goods or services now with the promise to pay for them later, you have used this.
What is credit?
Spending money that increases your human capital (your potential to earn more money).
What is good debt?
Prioritizing needs over wants, avoiding impulse purchases, and embracing a minimalist lifestyle
What is living within your means?
Connects borrowers directly with individual investors, offering small loans with flexible terms and potentially lower rates than traditional lenders.
What is peer-to-peer lending?
Explore options to consolidate high-interest debts into lower-interest loans for easier management.
What is refinancing and consolidation?
This is the extra money the borrower has to pay on top of the principal for the privilege of borrowing money.
What is interest?
Borrowing money that is used up or goes down in value immediately
What is bad debt?
Setting aside money to covering unexpected expenses to avoid reliance on credit cards or loans during emergencies and prevent debt accumulation
What is an emergency fund?
Platforms like GoFundMe enable homeless youth to raise funds online for specific needs, such as housing or medical expenses, by sharing their stories
What is crowdfunding?
Help negotiate settlements with creditors to pay off debts for less than the full amount owed
What is debt settlement?
This can be carried by individuals allowing them to make purchases by using credit
What is a credit card?
Money borrowed (from a credit card) that is used for a larger investment
What is secured debt?
Connect with organizations and agencies that specialize in providing support services for homeless youth. These resources may offer financial counseling, job training, and assistance with finding stable housing.
What is access resources?
Small, accessible loans tailored for those facing financial hardships
What is microloans from community organizations?
Understanding debt and developing budgeting skills
What is financial education?
This functions much like a credit card at the store, but the money comes directly from the individual's bank account
What is a debit card?
Money borrowed (from a credit card) that is used for something of quick consumption.
What is unsecured Debt?
Building a support network through mentors, social workers, and community resources to achieve financial stability
What is access community support?
Some nonprofits and social service agencies provide emergency loans with low or no interest rates and flexible repayment plans for homeless individuals in need of immediate financial assistance.
What is social service agency loans?
Connect with nonprofits or government agencies offering debt relief programs to provide assistance or forgiveness
What is debt relief programs?
The maximum amount of goods and services a person can place on one's line of credit.
What is a credit limit?