Ramsey Chapter 4

Front

money owed to another person or company

Back

Debt

Front

credit that automatically renews whenever a payment is made to reduce the debt

Back

Revolving Credit

Front

something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender

Back

Collateral

Front

a legal claim against (or right to own) an asset until the debt (loan) is repaid

Back

Lien

Front

an asset that increases in value over time

Back

Appreciating Asset

Front

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for

Back

Equity

Front

failure to repay a loan on time

Back

Default

Front

a loan for a fixed amount of money that‘s paid back in monthly installments

Back

Installment Credit

Front

an asset that loses value over time, such as a car that’s worth less every year

Back

Depreciating Asset

Front

a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash

Back

Predatory Lending