Debt Dictionary
Low-Interest Credit Card
A revolving line of credit that carries a lower interest rate than most credit cards either for an introductory period or throughout the life of the credit.
Lump Sum
A large one-time payment or distribution of money.
Margin Loan
An extension of money borrowed against the cash value of securities held in a margin account at a brokerage firm. The loan is often used for paying off debts.
Means Test
An income-based test required for Chapter 7 bankruptcy filers.
Mortgage
A secured loan that uses real estate as collateral against repayment. The lender can
seize possession of the property if the borrower defaults on the payments.
Mortgage Refinance
An adjustment of the remaining amount on a loan to secure a low interest rate, extend the payment term or increase the amount borrowed.
Negative Credit
A mark on a credit report from default or delinquency that decreases the credit score.
Net Income
A person's income minus expenses.
Ninja Loans
Loans to people with No Income, No Job or Assets. These products contributed to the boom in the housing industry in 2005, as more consumers qualified for mortgages under poor lending standards. The loans also played a key role in the ensuing subprime mortgage slump.
Non-Profit Company
A debt-relief agency funded through credit card companies that helps customers repay debts in full.
A revolving line of credit that carries a lower interest rate than most credit cards either for an introductory period or throughout the life of the credit.
Lump Sum
A large one-time payment or distribution of money.
Margin Loan
An extension of money borrowed against the cash value of securities held in a margin account at a brokerage firm. The loan is often used for paying off debts.
Means Test
An income-based test required for Chapter 7 bankruptcy filers.
Mortgage
A secured loan that uses real estate as collateral against repayment. The lender can
seize possession of the property if the borrower defaults on the payments.
Mortgage Refinance
An adjustment of the remaining amount on a loan to secure a low interest rate, extend the payment term or increase the amount borrowed.
Negative Credit
A mark on a credit report from default or delinquency that decreases the credit score.
Net Income
A person's income minus expenses.
Ninja Loans
Loans to people with No Income, No Job or Assets. These products contributed to the boom in the housing industry in 2005, as more consumers qualified for mortgages under poor lending standards. The loans also played a key role in the ensuing subprime mortgage slump.
Non-Profit Company
A debt-relief agency funded through credit card companies that helps customers repay debts in full.