| 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 | 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, money, or services on credit |
| Creditor | party who sells on credit or lends money |
| Debtor | party who buys on credit or borrows money |
| Financial agreement | 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 |
| 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 obtains possession of collateral by written or oral agreement |
| Pledgor | debtor in a pledge who voluntarily gives up possession of property |
| Previous balance method | finance charges figured as if no payment made during billing period |
| Revolving charge account | an account in which you can keep an outstanding balance and pay a small amount each month |
| Rught 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 | contract where debtor retains possession of collateral under a written contract |
| Security interest | interest given to creditor |
| Surety | third party agreeing to being 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 | charing a greater amount of interest on a loan than is allowed by law |
