Ramsey Chapter 4

money owed to another person or company

• Debt

• Depreciation

• Default

• Lien

credit that automatically renews whenever a payment is made to reduce the debt

• Revolving Credit

• Appreciating Asset

• Installment Credit

• Depreciating Asset

something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender

• Collateral

• Liel

• Equity

• Predatory Lending

a legal claim against (or right to own) an asset until the debt (loan) is repaid​​​​​​​

• Lien

• Default

• Term

• Depreciation

an asset that increases in value over time​​​​​​​

• Appreciating Asset

• Depreciating Asset

• Revolving Credit

• Equity

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for​​​​​​​

• Equity

• Appreciating Asset

• Interest

• Principal

failure to repay a loan on time​​​​​​​

• Default

• Term

• Depreciating Asset

• Debt

a loan for a fixed amount of money that‘s paid back in monthly installments  

• Installment Credit

• Revolving Credit

• Term

• Collateral

an asset that loses value over time, such as a car that’s worth less every year​​​​​​​

• Depreciating Asset

• Depreciation

• Negative Equity

• Interest

a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash

• Predatory Lending

• Default

• Lien

• Principal