Ramsey Classroom Ch1 FLASHCARD

Front

a person or organization that uses a product or service

Back

Consumer

Front

money owed to another person or company

Back

Debt

Front

the granting of a loan and the creation of debt; any form of deferred payment

Back

Credit

Front

the percentage of principal charged by the lender for use of its money

Back

Interest Rate

Front

person or entity that charges borrowers interest rates above an established legal rate

Back

Loan Shark

Front

the additional cost a lender charges for borrowing their money

Back

Interest

Front

the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities

Back

Net Worth

Front

anything that is owned by an individual, including money in the bank or investments

Back

Asset

Front

financial debts or obligations

Back

Liability

Front

the dollar value of a person’s assets is greater than the dollar value of their liabilities

Back

Positive Net Worth