Unit 3: Credit and Debt

Money that is borrowed and expected to be paid back with interest

• Loan

• Credit

• Bankruptcy

• Lender

The person, bank or company who you are borrowing money from

• Loan

• Principal

• Interest

• Lender

An installment loan that provides money for a car

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan

An installment loan that provides money for a house

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan

An obligation owed by one party to a second party

• Debt

• Debit

• Bankruptcy

• Interest

An initial payment made when something is bought on credit

• Debt

• Down Payment

• Principal

• Interest

An installment loan that provides funds borrowers can use for college tuition, textbooks, or living expenses

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan

They lend customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck.

• Payday Lenders

• Principal

• Banks

• Insurance Agent

A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit

• Gift Card

• Debit Card

• Credit Card

• Birthday Card

A legal process where people who cannot repay debts seek relief from some or all of their debts.

• Mortgage

• Credit Score

• Unbanked

• Bankruptcy