Ramsey Ch 4 Vocab

money owed to another person or company

• Lien

• Debt

• Credit

• Credit Score

Credit

• the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

• Money owed to a person or company

• 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

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

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

• Credit

• Lien

• Collateral

• Equity

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

• Lien

• Debt

• Credit

• Ownership

Default

• failure to repay a loan on tim

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

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

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

Installment Credit

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

• 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

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

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

an asset that increases in value over time

• Appreciating Credit

• Depreciating Credit

• Revolving Credit

• Installment Credit

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

• Appreciating Credit

• Depreciating Credit

• Revolving Credit

• Installment Credit

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

• Credit

• Debt

• Equity

• Lien

Credit Score

• a statistical number used to represent a consumer‘s creditworthiness

• Your lucky number

• A number used to by the government to track your spending

• The number used to represent how much debt you have