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Debt Education
Term
The life or time to maturity of a loan or deposit. Term Loan A loan the borrower repays in its entirety at the end of the term in one large payment, also known as a single-payment loan. Third-Party Firm A company that acts as a middle man between a creditor and a debtor in a repayment plan. Thrift A term referring to savings and loan associations and credit unions. Title Loan An extension of money against the ownership right of property, such as a car or boat title. Transfer The procedure of moving a balance to another account. Many credit lenders will allow you transfer your credit card balance from one card to another. Unsecured Credit A revolving line of credit not backed by collateral. Most credit cards are are a form of unsecured credit. Unsecured Debt A financial obligation that is not guaranteed by the pledge of any collateral. Most credit cards are a form of unsecured debt. Unsecured Debt Consolidation Loan An advance of money not backed by an asset for the purpose of replacing multiple debts with one loan at a lower interest rate. Unsecured Loan A lump-sum distribution of money that involves no collateral. Unsecured loans are usually personal loans, such as loans given by a bank or other lending institution. |
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