3.1-3.2 Vocab Flashcard Review

Front

Organization or person using credit.

Back

Debtor

Front

Org/person extending credit to debtors

Back

Creditor

Front

Security that ensures loan repayment, like personal belongings or titles.

Back

Collateral

Front

Small loan at high interest, repaid with next paycheck.

Back

Payday Loan

Front

Interest rate remains constant during the loan duration.

Back

Fixed Rate

Front

Interest rate can change during the loan duration.

Back

Variable Rate

Front

An installment loan is used to finance a specific purchase for a specific time.

Back

Used to finance a specific purchase for a specific time.

Front

Open line of credit for purchases under limit.

Back

Revolving Credit

Front

Credit: When something is bought without immediate payment.

Back

When something is bought that is not paid for at the time of purchase.

Front

Involuntary wage assignment, often by court order.

Back

Wage Garnishment