| |
| |
|
Debt Consolidation Information |
|
|
|
Debt a Glossary of Terms
Bankruptcy - Having been legally declared financially insolvent. There are two types of bankruptcy - liquidation, in which your debts are cleared (discharged) and reorganization, in which you provide the court with a plan for how you intend to repay your debts. Collateral - Property acceptable as security for a loan or other obligation. Collection Agency - A company hired by a creditor to collect a debt that it is owed. Contract - An agreement between two or more parties, usually written down and enforceable by law . Cosigner - To endorse (another's signature), as a loan agreement, lease or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan or debt. Credit Bureau - An organization to which business firms apply for credit information on prospective customers. Credit Report -An account of your credit history, prepared by a credit bureau. A credit report will contain credit history, such as what you owe to whom and whether you make the payments on time, as well as personal history, such as your former addresses, employment record and any lawsuits in which you have been involved. Creditor - A person or entity (such as a bank) to whom a debt is owed. Debtor - A person or entity (such as a bank) who owes money. Debt to Income Ratio - Most mortgage lenders use this ratio to analyze your financial well-being. It is figured by using your monthly debt divided by your monthly income. The lower the percentage the better your financial picture. This is often referred to as credit worthiness. Default - To fail to pay money when it is due. A default on a mortgage or loan takes place when you fail to make the loan payments on time, fail to maintain adequate insurance or violate some other provision of your agreement with the mortgage / loan company. Discharge (of debts) - A court's writing of off the debts of a person or business that has filed for bankruptcy. Dischargeable Debts - Debts that can be erased by going through bankruptcy. Down Payment - A cash payment made by a buyer when they purchase a property. Equity - An increase in the value of your home or decrease in the loan amount on your home creates equity. Equity is the difference between what is owed on your home and the sale value. Most home equity lenders will allow you to borrow up to 80% of that value. Fair Isaac and Company - Fair Isaac is the company responsible for creating the popular FICO score. This three digit score is created using information from your credit report and ranges from 300-850. Foreclosure - The forced sale of property to pay off a loan on which the owner of the property has defaulted. Garnishment - A court order directing a third party who holds money or property belonging to a defendant to withhold it and appear in court to answer inquiries. Grace Period - A period of time during which you are not required to make payments on a debt. Guarantor - A person who makes a legally binding promise to either pay another person's debt or perform another person's duty if that person defaults or fails to perform. Interest - A commission you pay a bank or other creditor for lending you money or extending you credit. Usually calculated as a percentage of the mortgage or loan. Lien - The right to take and hold or sell the property of a debtor as security or payment for a debt or duty. Loan Consolidation - The combining of a number of loans into a single new loan. Usually done to gain more favourable terms e.g. lower cost repayments or longer time to pay. Principal - A sum of money owed as a debt, upon which interest is calculated. If you purchased an item for $100 on your credit card that would be the principal balance. Repossession - A creditor's taking of property that has been pledged as collateral for a loan. Secured Debt - A debt on which a creditor has a lien. A car loan would be an example of secured debt. Term - The time required to repay a loan. Unsecured Debt - A debt that is not tied to any item of property. Credit card debt is an example of unsecured debt. About the Author This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.
MORE RESOURCES:
Google News |
 |
|
|
RELATED ARTICLES
Money Problems? You're not alone. Many people face a financial crisis some time in their lives. Planning To Become Debt Free With A Consolidation Loan If you have multiple debts, and are struggling to meet the monthly payments, then there's a good chance you will want to consider, now or later, a consolidation loan to become debt free.If you have already studied your monthly expenditure and can see no way to make savings, and find you have no way of earning extra money, then your next option may be a free debt consolidation loan. Escape the Credit Card Death Spiral You're burdened with crushing debt and at the end of your rope. There's got to be a way out. How to Choose a Debt Consolidation Loan? If you have decided that a debt consolidation loan is necessary, then you have made a big decision. In order to choose the right debt consolidation loan for you, you need to take the time to research what is available versus your needs. Online Debt Consolidation Services - Lower Your Monthly Payments Now Consumers looking for a way out of debt may want to consider the services of a debt consolidation firm. If you are spending more money than you can reasonably afford each month on paying credit card bills, medical bills, or other types of unsecured debt, a debt consolidation firm may be able to help you become debt free much faster than you ever expected. Avoid Bankruptcy The first but definitely not the easiest thought that comes to most people when they are neck-deep in debt is to file bankruptcy. Filing bankruptcy seems to be the last straw left in the deluge of unpaid bills and abusive creditor calls. Debt Consolidation when You Find Yourself Overwhelmed with Bills, Bills, and More Bills Many of us find ourselves overwhelmed with bills, bills, bills. Going to the mailbox only to find yet another late payment notice may have become a daily trauma. Debt Settlement Strategies One of the most common social diseases remains dormant for a long time. And when it raises its head, it reveals its monstrosity slowly. Perks and Pitfalls of Debt Consolidation Whether you want to pursue debt consolidation in order to make a good financial situation better or to pull yourself back from the brink of bankruptcy you will want to consider the good and bad things that may result from the choices you make.Perks and Potential Benefits of Debt Consolidation1. Debt Consolidation Solution Debt Consolidation is a solution that solves your debts. Debt is a financial hazard. Debt Consolidation - Can You Negotiate with Your Credit Card Company? The average American household has nearly $10,000 in credit card debt, and many people are only able to make the minimum payment of 2% of the balance. Even 2% is $200, and by paying the minimum payment, you could be paying on the balance for decades before you finally pay it off. Reducing Credit Card Debt One of the easiest "things" that can happen in life is the ratcheting up of a large credit card debt. For whatever reason, making purchases with credit cards seems easier than spending cash to obtain a product or service. 16.4% APR $5,000 Auto Loan...HELP! Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:DEAR LoanResources. Is Consolidating Loans Right For You? Consolidating loans makes sense but only if you can pay a lower interest rate than what you're paying now. This is especially true if you are consolidating mortgage loans. Debt Consolidation Service In Birmingham Jane was a fun loving girl from Birmingham, you could say she lived for today. She wanted all the latest fashions and gadgets and certianly was not afraid to use her credit card to pay for them. Pay Off Debt - Get Out Of Debt And Lower Your Monthly Payments Debt consolidation can be confusing, especially if you have never considered contacting a debt consolidation company before. A debt consolidation company can give you free advice on reducing your monthly payments and show you the path to becoming debt free. Financial Aid - When Should I Apply For? Many different types of financial aid are available to you in the form of scholarships, grants, and loans. With billions of dollars at stake, it is important to begin the search process early and to apply on time. 4 Debt Reduction Tips If you are overwhelmed by debt, there are options you can take that will help you pay off what you owe without the stigma of filing for bankruptcy. We'll examine four ways you can get your debt under control and start working back on the road to financial recovery. Debt Consolidation Confusion Learning about debt consolidation can be quite a confusing venture for your average person. There is plenty of conflicting information to be found about debt consolidation. What You Need to Know About Debt Consolidation Debt consolidation is often a last resort for people who are in extreme debt and trying to avoid bankruptcy. Many people who are not in danger of bankruptcy, but have debt on high interest credit cards may also choose to consolidate their debt.
|
| debt-consolidation |debt consolidation | site map |
| ©2009 easy ways to make money |
