| A | B |
|---|
| Collateral | Property or savings that could be offered to repay a loan |
| Annual Percentage Rate (APR) | Cost of credit on a yearly basis |
| Unsecured Loan | Cash loan not backed by collateral |
| Interest Rate | Stated percentage of the principal |
| Down Payment | Cash or check payment that is a portion of the cost |
| Finance Charge | Cost of credit in a dollar and cents amount |
| Repossess | Crediors take back items if debtors fail to make payments |
| Cosigner | Someone who agrees to make payments if a debtor is unable to do so |
| Secured Loan | Cash loan backed by collateral |
| Garnishment | creditors take part of a debtor's wages when he or she misses payments |
| Principal | Sum of money owed as a debt upon which interest is computed |
