Chapter 4

Money owed to another person or company.

• Debt

• Credit

• Lien

• Interest

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

• Credit Low

• Credit Limit

• Revolving Credit

• Credit Score

Something owned (that has value) offered as a security on a debt.

• Predatory Lender

• Equity

• Credit Score

• Collateral

The additional cost a lender charges for borrowing their money.

• Interest

• Credit Score

• Debt

• Collateral

An asset that increase in value over time

• Depreciating Asset

• Asset

• Appreciating Asset

• Equity

The increase in value of a home over time; the difference between the amount owned and what the home could be sold for.

• Compound Interest

• Equity

• Compound Growth

• Growth

Failure to repay a loan on time

• Loan Amount

• Loan Term

• Default

• Repossession

a legal claim against an asset until the debt (loan is repaid)

• Legal Document

• Lien

• Paperwork

• Asset

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

• Credit

• Installment loan

• Debt

• Depreciation Asset

An asset that loses value over time, such as a car that's worth less every year.

• Depreciating Asset

• Predatory Lender

• Appreciating Asset

• Default