Debt Dictionary
Principal
The initial amount of a debt excluding interest and other fees
Qualification
An approval process for a debtor who is attempting to obtain an unsecured loan or file for Chapter 7 bankruptcy in which the debtor is subject to an income-based test called the means test.
Recurring Debt
Consumer debt that consistently occurs, such as credit card debt, and fails to be paid off.
Refinance
The restructuring of a mortgage amount and term to seize a low interest rate or cash out equity.
Repayment Plan
An arrangement set up for consumers to pay off debts over a specified period with fixed monthly payments.
Repossession
The seizure of property after a borrower fails to make payments. Loans that are secured with collateral, such as car loans and home mortgages, include a risk of repossession.
Retirement Fund Loan
Money borrowed against the accumulated cash value of a retirement plan.
Revolving Credit
An available amount of money borrowers can pay off and use again that does not carry a fixed repayment schedule but only minimum payments.
Savings and Loan Association
A depository institution, also known as a thrift, that provides loans and mortgages, along with other similar services as commercial banks.
Second Mortgage
A home equity loan or home equity line of credit. An extension of money backed by a home's equity that is second priority to the first mortgage.
The initial amount of a debt excluding interest and other fees
Qualification
An approval process for a debtor who is attempting to obtain an unsecured loan or file for Chapter 7 bankruptcy in which the debtor is subject to an income-based test called the means test.
Recurring Debt
Consumer debt that consistently occurs, such as credit card debt, and fails to be paid off.
Refinance
The restructuring of a mortgage amount and term to seize a low interest rate or cash out equity.
Repayment Plan
An arrangement set up for consumers to pay off debts over a specified period with fixed monthly payments.
Repossession
The seizure of property after a borrower fails to make payments. Loans that are secured with collateral, such as car loans and home mortgages, include a risk of repossession.
Retirement Fund Loan
Money borrowed against the accumulated cash value of a retirement plan.
Revolving Credit
An available amount of money borrowers can pay off and use again that does not carry a fixed repayment schedule but only minimum payments.
Savings and Loan Association
A depository institution, also known as a thrift, that provides loans and mortgages, along with other similar services as commercial banks.
Second Mortgage
A home equity loan or home equity line of credit. An extension of money backed by a home's equity that is second priority to the first mortgage.
