Glossary
When it comes to debt consolidation, not everyone is an expert. At the Debt Management Credit Counseling Corp, we'd like to think we have quite a few of them though. With their help, we've put together this helpful glossary of debt consolidation terms. If you're confused about any debt terms, read on to learn about their definitions:
Annual Percentage Rate (APR) - The interest rate on a loan or credit card in terms of an annual percentage.
Balance Transfer - The process of moving a debt to a different lender, usually in order to receive a lower interest rate.
Bankruptcy - Legal declaration of one's inability to repay debts.
Credit Bureau - An agency that tracks consumer credit history and supplies credit reports.
Credit Score - A numerical rating of one's credit worthiness based on past credit history.
Debt - Money owed to a person or business in exchange for services or a loan.
Default - Refers to a borrower that fails to repay a loan or debt by the due date.
Delinquency - The failure of a borrower to make payments to lender on time.
Liability - One's legal responsibility to repay debt.
Interest Rate - The fee charged on the balance of a credit card or loan.
Introductory Rate - In reference to credit cards, the interest rate offered to new customers. This rate typically increases after introductory period ends.
Principal - The amount of an original debt that has not been paid, not including interest.
Statement - A detailed summary of a credit card's activity, usually received monthly.
If you have any questions, you can find some answers in our frequently asked questions.
