Budgeting
Something you buy that you do not need.
What is a want?
A loan you take out to buy a home.
What is a mortgage?
This involves security deposits, first and last months rent, nonrefundable deposits
What are up-front costs?
A way to get your debt under control through financial planning and budgeting.
What is debt management?
A score that shows how reliable you are when paying debt.
What is a FICO credit score?
How you plan to spend your income
What is a budget?
A loan you take out to pay for a vehicle.
What is an auto loan?
The type of cost that a mortgage is
What is recurring costs?
A legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
What is bankruptcy?
A card that lets you borrow money.
What is a credit card?
An expense that changes from month to month.
What is a variable expense?
The type of interest that most morgages use.
What is compound interest?
The type of insurance for homeowners
All your monthly debt payments divided by your gross monthly income.
What is debt to income ratio?
The yearly cost of borrowing money.
What is an APR?
A budget where you spend all money after expenses on wants.
The original amount of money you get from a loan.
What is principle?
Advantages include building equity, tax benefits, potential rental income, and creative freedom
To combine assets, liabilities, and other financial items of two or more entities into one.
What is Consolidation?
The maximum amount of money you can borrow on a credit card.
What is a credit limit?
A budget where you list expenses until you reach $0
What is a zero based budget?
A loan that is meant to help you build credit.
What is a credit builder loan.
Disadvantages include no equity building, no tax benefits, and limited housing security.
What is Renting?
The percentage of available credit that you're using on your credit cards and other lines of credit.
What are Utilization Scores?
The minimum amount you can pay monthly.
What is a minimum payment?