Debt Glossary Terms

Bankruptcy

Bankruptcy is the legal process in which a person declares their inability to pay bills and debts. Bankruptcy stays on the borrower's credit history for up to 10 years. The most common form of individual bankruptcy is Chapter 7.

Mortgage Loans

A mortgage loan is simply a loan that is secured by residential real estate.

Credit Scores

Credit score is the number generated by the credit bureaus, which represent a person’s credit rating. The credit score ranges from 450 to 900.

Credit Report

A credit report is a detailed report showing a person’s credit history such as their revolving accounts, installment accounts, and a detailed description from tax liens and judgments.

Credit Counseling

Credit counseling is a professional counseling service provided by organizations to help people to find ways to repay their debt and fix their credit.

Debt Free

Debt free is a term used when you have no bills or debts of any kind.

Debt Calculator

A debt calculator is a calculator used to calculate how much debt you have.

Credit Bureaus

There are three credit bureaus known as Equifax, Experian, and Trans Union. These credit bureaus collect and store credit information on people.

Loan Calculator

A loan calculator is used to determine how much a loan will cost you over time including the interest.

Motorcycle Loans

A motorcycle loan is a loan used to purchase a motorcycle. Motorcycle loans cannot be used to purchase automobiles.

Liability

Liability refers to the person who is responsible to compensate another individual because of negligence, an accident, damage, injury, loss, or inconvenience.

Bankruptcy Attorneys

A bankruptcy attorney is a lawyer that is licensed to practice in federal bankruptcy court. Individuals hire bankruptcy attorneys to help them file for bankruptcy.

Auto Refinancing

Auto refinancing is used when you want to refinance your vehicle to get your car payments lower, because you are adjusting to a lower interest rate or a longer term.

Credit Cards

Credit cards are a plastic card used to make purchases or obtain cash advances using a line of credit that is made available by the bank or company that issued the credit card.

Loan Consolidation

Loan consolidation is a loan that is created by combining two or more loans to reduce the amount of monthly payments and extend the loan term

Debt Management

Debt management involves taking the help of debt management experts to find a proper solution towards getting rid of debt.

Debt Relief

Debt relief is a term used for rescheduling and refinancing debt to reduce the burden of debt and the monthly payments.

Free Credit Report

Free credit reports are free reports that you can get instantly online to check your credit score.

Personal Loan

A personal loan is a term used for a loan where people will receive a lump sum. Personal loans have fixed repayments and fixed interested rates.

Auto Loan

An auto loan is used to finance an automobile.

Student Loans

Student loans are loans that are offered to students to help assist them in the cost of professional education. Student loans usually carry lower interest rates than other loans and are usually issued by the government.

Credit Card Debt

Credit card debt is the unpaid balance on credit cards.

Collection

Collection is the activity to collect money that is owed to a company or a third party.

Home Loan

A home loan is also known as a mortgage. A home loan is secured by the equity value in the borrower’s home.

Financial Freedom

Financial freedom describes a lifestyle where a person no longer is required to work to cover their expenses.