Credit and Debt Terms

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

• co-signing

• debt consolidation

• leasing

• cash advance

Taking responsibility for someone else's loan.

• debt consolidation

• home equity loan

• co-signing

• debt snowball

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

• adjustable rate mortage

• cash advance

• leasing

• debt snowball

A long-term rental agreement.

• cash advance

• home equity loan

• debt snowball

• leasing

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

• debt consolidation

• adjustable rate mortgage

• cash advance

• leasing

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

• adjustable rate mortgage

• debt consolidation

• home equity loan

• leasing

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

• co-signing

• debt snowball

• leasing

• home equity loan

Debt consolidation is a good idea.

• True

• False

Cars can only be rented using a credit card.

• True

• False

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

• True

• False