Financial Terms Flashcards

Front

Debt

Back

Money owed to another person, company, etc.

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Credit

Back

The ability to borrow money or buy things to be paid back later.

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Amortized Loan

Back

A loan designed to be paid off in a set amount of time.

Front

Principal

Back

The original amount of money borrowed.

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Interest

Back

The money that is added to the principal monthly due to the interest rate.

Front

Interest Rate

Back

The amount a loan is charged monthly.

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Loan Term

Back

The set amount of time a loan has to be repaid.

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Garnishment

Back

A court-ordered form of debt collection where money is taken directly from a person's pay.

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Disposable Income

Back

Money a person has left after paying all required taxes.

Front

Lender

Back

The person to whom money is owed.