Term
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Definition
| fee charged by a credit card company for the use of their credit card. |
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Term
| Annual Percentage Rate (APR) |
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Definition
| cost of borrowing money on an annual basis;takes into account the interest rate and other related fees on a loan |
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Term
| Adjustable Rate Mortgage(ARM) |
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Definition
| home loan secured by a deed of trust or mortgage in which the interest rate will change periodically;typically adjusted based on a published index such as a result of high interest rates in the early 1980s as a way for banks to transfer the risk of higher interest rates to the consumer. |
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Term
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Definition
| home loan in which the sum of the monthly payments is insufficient to repay the entire loan;a final payment comes due, which is a lump sum of the remaining principle to be paid. |
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Term
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Definition
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Term
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Definition
| tool used to finance a purchase |
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Term
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Definition
| type of card, often bearing the seal of a major credit card company, issued by a bank and used to make purchases;unlike a credit card, the money comes directly out of a checking account;also called check card |
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Term
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Definition
| act of combining all debt into one monthly payment, typically extending the terms and the length of time required to repay the debt. |
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Term
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Definition
| preferred method of debt repayment;includes a list of all debts organized from smallest to largest balance;minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments. |
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