Credit and Debt Terms

Front

The act of taking out a new loan to pay off other liabilities and consumer debts, generally unsecured ones

Back

debt consolidation

Front

Taking responsibility for someone else's loan.

Back

co-signing

Front

Helps you pay off debt by using the money from one loan to pay on another loan once the first loan is paid off.

Back

debt snowball

Front

A long-term rental agreement.

Back

leasing

Front

This type of loan can be charged up to 400% in interest.

Back

cash advance

Front

The amount of interest charged on your home loan can go up and down.

Back

adjustable rate mortgage

Front

This loan requires that you use your home as collateral to borrow money.

Back

home equity loan

Front

Is debt consolidation a good idea?

Back

False

Front

Cars can only be rented using a credit card.

Back

False

Front

It is a good idea to buy a used car to avoid some depreciation.

Back

True