Download on Debt
Money borrowed to pay for something that’s value will increase over time.
What is good debt?
Amount charged to borrow money.
What is interest?
This is a short period of time, typically 6 months, that you do not have to make payments.
What is a grace period?
The ability to obtain goods or services before payment, based upon the trust that payment will be made in the future within an agreed upon time frame.
What is credit?
How often payment is due or the length between each loan payment.
What is payment intervals?
Money borrowed to buy something that loses value over time.
What is bad debt?
Interest remains the same for entire length of the loan.
What is a fixed interest rate?
Failure to make a loan payment for 270 days or more. Loan can become immediately due.
What is student loan default?
A score of “creditworthiness” calculated based on your payment history, credit utilization, length of credit history, new credit accounts, and credit mix.
What is credit score?
What is principal?
The total amount of money owed. The money may be owed to a bank, the government, or another person.
What is debt?
Rate fluctuates based on financial markets.
What is a variable interest rate?
An approved delay to repayment schedule.
What is deferment?
A statement that has information about your credit activity and current credit situation.
What is credit report?
The amount of time to pay back a loan or total repayment period.
What is a term?
A specific amount of money borrowed from another party.
What is a loan?
Interest paid on interest (by adding interest to the principal and then charging interest on the new principal balance).
What is compounding interest?
Reduces your monthly loan payments or stops your loan payment requirement for up to 12 months.
What is forbearance?
The amount of money you owe versus the amount of credit your have access to.
What is credit utilization?
Applying a higher proportion of your first payments toward interest and a lower proportion toward the principal amount.
What is amortization?
An agreement between a lender and a borrower
What is credit?
A line of credit you can borrow against, and pay back again and again, without having to apply for a new loan.
What is a revolving loan?