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Debt Glossary – Terms and Definitions
- APR – APR is an abbreviation for annual percentage rate
- Annual fee – A fee charged by the creditor on a yearly basis.
- Balance transfer fee – Fee charged for making a balance transfer
- Bankruptcy – A legal process when a court excuses someone from paying their debts.
- Billing cycle – A time between each billing statement.
- Cash advance - The borrowing of cash against ones credit card.
- Charge off – A debt that the collector has decided cannot be collected.
- Credit limit – The amount of money allowed on a credit card.
- Debt – A balance that has been borrowed and needs to be paid back.
- Default – To not pay a debt that was promised by a contract.
- FCRA – Fair credit reporting act
- Finance charges - Costs combined by the APR and balance
- Garnishment – Money legally taken from one paycheck to pay an unpaid debt.
- Interest rates – Money charged for a loan.
- Judgment - A court order to pay on a debt.
- Late fees – Money charged for not paying a debt on time.
- Minimum payment – The minimum amount that can be paid for that billing cycle.
- Revolving credit – Credit that can be used repeatedly.
- Payment date – The date that a payment is due.
- Overdraft protection – A service that offers protection for money that was not available to pay a debt.
- Past due – When a payment has not been applied on the agreed date.
- Variable interest rate – An interest that changes due to another interest rate
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