Vocabulary
Money that you owe someone else that has to be repaid.
What is Debt?
The loan you take out to buy a car.
What is an Auto Loan?
Interest calculated only on the principal (borrowed amount) of a loan.
What is Simple Interest?
True or False: Should you build an emergency fund while paying down your debt?
True!
Penalty charges that you could pay for late payments, renewing a payday loan, or other consequences.
What is a Fee?
The loan you take out to pay for college.
What is a Student Loan?
True or False: Paying more than the minimum monthly payments increases your total interest paid.
False!
Name a way to reduce student loan debt.
Teachers Call.
This is a score that lets lenders know how safe it is to lend you money.
What is a Credit Score?
The most expensive and longest term loan we've talked about this unit.
What is a Mortgage?
What is an Annual Percentage Rate (APR)?
The debt payment method that has you pay off the smallest debts first.
What is the Snowball Method?
Someone that helps you take out a loan and will repay it if you can't.
A type of revolving credit that you can use to buy pretty much anything.
What is a Credit Card?
Interest calculated on the principal (borrowed amount) AND previously calculated interest.
What is Compound Interest?
The debt payment method that has you pay off the largest debts first.
What is the Avalanche Method?
These 3 things make up all loans (guess 2 for 500 points and all 3 for 600 points).
What is the Principal, the Interest, and the Loan Term?
A loan that has no interest, only fees.
What is a Payday Loan?
An annual interest percentage that includes compound interest.
What is an Annual Percentage Yield (APY)?
True or False: Paying more than the minimum monthly payments will improve your credit score more than paying only the minimum payments.
True!