| A | B |
|---|
| Adjusted balance method | Finance charges are added after subtracting payments made during billing period |
| Artisan’s Lien | Lien for unpaid services assessed against personal property that has been improved |
| Average daily balance method | Finance charges figured by adding balances for each day in billing period and then divide by the number of days in the billing period. |
| Collateral | Property that is the subject of a secured loan |
| Cosigner | Helps protect a loan when a borrower’s credit rating is poor or has not been established |
| Credit card | Card or other device used to obtain goods |
| Creditor | A party who sells on credit or lends money |
| Debtor | A party who buys on credit or borrows money |
| Financial agreement | A written notice of existence of a security interest in identified property |
| Garnishment | Court-ordered procedure by which a portion of a delinquent debtor’s wages are paid to satisfy the debt |
| Grace period | Interest-free period before payment is due |
| Guarantor | Party agreeing to be secondarily liable in case of default by the principal debtor |
| Lien | Legal right in another’s property as security for the performance of an obligation such as the repayment of a loan |
| Mechanic’s lien | Lien against realty available to one who has supplied labor or materials to improve it |
| Open-end credit | Credit that can be increased by debtor up to a limit set by creditor |
| Pawn | Pledge of tangible personal property |
| Pledge | Creditor obtains possession of collateral by written or oral agreement |
| Pledgee | Creditor in a pledge who takes possession of property given up by pledgor |
| Pledgor | Debtor in a pledge who voluntarily gives up possession of the property |
| Previous balance method | Finance charges figured as if no payments made during billing period |
| Revolving charge account | An account in which you can keep an outstanding balance and pay a small amount each month |
| Right of contribution | Cosurety who pays the full debt is entitled to judgment against the other cosureties for their proportionate share of the debt |
| Secured loan | Creditors obtain an interest in something of value |
| Secured party | Lender or seller who holds secured interest |
| Security agreement | A contract where debtor retains possession of collateral under a written contract |
| Security interest | Interest given to creditors |
| Surety | Third party agreeing to be primarily liable for debt in case of default by the principal debtor |
| Suretyship | Being primarily liable for a debt created in favor of the principal debtor |
| Usury | Charging |
