| A | B |
|---|
| a financial amount paid to ones’ former spouse for support after a legal separation or divorce | Alimony |
| any items of value that a person owns | Assets |
| financial situation in which a court declares one’s debts to be greater than the total value of one’s assets | Bankrupt |
| amount that an insurance policy is worth if canceled before maturity. An insurance company will lend to a policy holder based on his or her policy. | Cash value |
| someone who signs a loan with the borrower, thus accepting legal responsibility for paying the debt if the borrower defaults (does not pay). | Co-applicant, joint applicant, co-signer |
| joint ownership between two or more persons | Co-ownership |
| lender; one to whom money is owed | Creditor |
| people who will recommend the credit applicant as a good credit risk | Credit references |
| money owed | Debt |
| amount still owed on a debt at a given time | Debt balance |
| failure to fulfill the terms of the loan agreement | Default |
| those who rely on a person for support | Dependents |
| the total cost to use credit, including interest, loan fees, and credit insurance | Finance charge |
| the amount paid for the use of borrowed money | Interest |
| the percentage of the principal that a borrower pays for the use of the borrowed money. | Interest rate |
| financial obligations | Liabilities |
| a loan for purchasing real estate. If the borrower does not repay the loan according to the terms of the contract, the lender can legally force the sale of the property to pay off the loan. | Mortgage |
| person or institution that made the mortgage loan | Mortgage holder |
| the amount of money a borrower receives from the loan | Proceeds |
| land and property attached to the land | Real estate |
| to take back what was sold on an installment plan or loan if payments are not made as agreed | Repossess, reclaim |
| a method of calculating interest by which the borrower pays more interest during the early months of a loan and less at the end of the loan period | Rule of 78 |
| stocks and bonds | Securities |
| to be paid with interest in one lump sum at the end of a stated time period. | Single-payment loan |
| – repaid with interest in a series of payments | Installment loans |
| a written contract to repay borrowed money under agreed-upon terms. – called signature loans or unsecured loans | Promissory note |
| backed by property pledged to insure payment of the loan | Secured loan |
| property pledged as security for a loan. | Collateral |
| written promise to pay a debt. (usually given to people with a good credit rating) | Unsecured loan |
