Glossary Terms

Foreclosure
Foreclosure

Nov 30, 2022
dependent
Dependent

A dependent is someone who relies on another individual for the financial support they need to meet their basic expenses. An individual can be a dependent of different people throughout their life, such as parents, spouses, partners, or even employers.

Nov 30, 2022
Debt
What is Debt?

Debt is money that you owe to another person or company. It usually comes in the form of a loan, where you borrow money and then have to pay it back with interest.

Nov 30, 2022
Liquidation

Liquidation is a process in which assets of a company are sold off to settle its debts.

Nov 30, 2022
Interest rate
What is an Interest Rate?

Interest rates are the cost of borrowing money. The amount charged for this loan is commonly referred to as the interest rate. Interest rates can vary based on several factors, including the amount borrowed and your credit history.

Nov 30, 2022
debt ceiling
Debt Ceiling

Debt ceiling is a term that refers to the maximum amount of money that can be legally borrowed by the US government.

Nov 30, 2022
guarantor
What is a Guarantor?

A Guarantor is the person who promises that a borrower will pay back his or her debts.

Nov 21, 2022
Debt Consolidation
Debt Consolidation

Debt consolidation is the process of combining all your debt (credit card, mortgage, student loan) into one monthly payment. A consolidated debt is paid off with a single loan.

Nov 21, 2022
credit report
What is a Credit Report?

A credit report is a detailed record of an individual’s credit history, including their past and current loans and payment habits. This information is used by lenders to determine an individual’s creditworthiness when applying for loans or other forms of credit.

Nov 21, 2022
Acceleration
Acceleration

Acceleration, in finance, refers to the speeding up of a financial obligation, such as a loan or mortgage. This can happen voluntarily, as in the case of prepayment, or involuntarily through default. In either case, it can have significant consequences for both the debtor and creditor.

Nov 21, 2022
liability
Liability

In finance, liability refers to an obligation or debt that an individual or company is responsible for repaying. This can include items such as loans, credit card debt, and unpaid taxes. Liabilities must be managed carefully in order to maintain financial stability and avoid defaulting on payments.

Nov 16, 2022
escrow
What is Escrow?

Escrow is a financial arrangement where a neutral third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps to ensure that both parties fulfill their obligations in the transaction before any exchange of money takes place.

Nov 16, 2022
FICO
What is a FICO Score?

A FICO (Fair Isaac Corporation) Score is a measure of creditworthiness, calculated using information from the consumer’s credit report.

Nov 16, 2022
Bankruptcy
What is Bankruptcy?

Bankruptcy is a legal process where an individual or business unable to pay their debts can get a fresh start. It allows them to either restructure or eliminate their debt obligations and protect their assets from creditor actions.

Nov 16, 2022
Home equity loan
Home Equity Loans

A home equity loan is a type of loan in which the borrower uses their home as collateral. The loan amount is determined by the equity in the home, or the difference between the property’s market value and any outstanding loans associated with it.

Nov 14, 2022
Mortgage
What is a Mortgage?

A mortgage is a loan used to purchase a property. The borrower makes monthly payments toward the loan, which go towards paying off the principal amount borrowed as well as interest on the loan.

Nov 7, 2022
What is an FHA Loan?
What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. This type of loan allows for lower credit scores and a higher debt-to-income ratio compared to conventional loans.

Nov 7, 2022
Credit SCore
What is a Credit Score?

A credit score is a numeric representation of an individual’s creditworthiness. It is calculated using information from the individual’s credit history, such as past loan and credit card payments.

Nov 7, 2022
Paycheck protection program ppp loan for small business forgiveness application.
What is a PPP loan?

A PPP loan, also known as a Paycheck Protection Program loan, is a type of loan offered through the Small Business Administration (SBA) designed to help small businesses with payroll and certain other expenses during the COVID-19 pandemic.

Nov 6, 2022
equity
What is Equity in Regard to Finance?

Equity, in finance, refers to the value of ownership in a company. This can be measured by subtracting the company’s liabilities from its assets. In other words, equity represents the portion of a company that is owned by its shareholders.

Nov 6, 2022
What is a loan
What is a Loan?

There are several types of loans available, including personal loans, home loans, student loans, and business loans. Each type of loan has its own terms and conditions, which the borrower must agree to before taking out the loan.

Oct 13, 2022
Credit Cards
What is a credit card?

A credit card is a plastic card that gives the cardholder a certain amount of credit to spend. There are many different types of credit cards, each with its own set of benefits and drawbacks.

Oct 13, 2022

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