Debt Vocabulary

A yearly fee that is charged by the credit card company for the convenience of the credit card.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

An expense, such as a charitable contribution, that can be deducted from one's taxable income.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time.

• Tax Deduction

• Annual Fee

• Annual Percentage Rate (APR)

• Introductory Rate

• Loan Term

A decrease or loss in value.

• Credit Card

• Credit Report

• Credit Score

• Debt Snowball

• Depreciation

A measure of an individual's credit risk; calculated from a credit report using a standardized formula.

• Credit Card

• Credit Report

• Credit Score

• Debt Snowball

• Depreciation

Type of card issued by a bank that allows users to finance a purchase.

• Credit Card

• Credit Report

• Credit Score

• Debt Snowball

• Depreciation

A detailed report of an individual's credit history.

• Credit Card

• Credit Report

• Credit Score

• Debt Snowball

• Depreciation

Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked wit the largest possible payments.

• Credit Card

• Credit Report

• Credit Score

• Debt Snowball

• Depreciation