Flashcard on Borrowing Money

Front

What is the term of a loan?

Back

The amount of time you have to pay back the loan.

Front

What is interest on a loan?

Back

The money you pay for borrowing the money.

Front

What are the three parts of a loan?

Back

Principal, interest, and term.

Front

What is the principal of a loan?

Back

The money you borrow.

Front

How can you avoid large debt on your credit card?

Back

Pay your full balance every month.

Front

What does 'borrowing money' mean?

Back

Taking money from someone with the promise to pay it back later.

Front

What is a loan?

Back

A sum of money that is borrowed and expected to be paid back with interest.

Front

What is a credit card?

Back

A card that allows you to borrow money to make purchases.

Front

What is a monthly payment?

Back

The amount of money you pay each month towards a loan or credit card.

Front

What does 'debt' mean?

Back

Money that you owe to someone.