Vocabulary

Click on a topic below to expand its list of vocabulary and associated terminology,

Balance – the amount of money you owe on your debt
Example: Debt of $100 and you repay $10 – balance is $90

Debt/Debts – money you owe someone

Debt Management – a plan to pay back your debt

Interest – extra money you pay when you repay a debt
Example: 4%, $100 loan. Payment $100 for the loan and $4 for the 4% interest = $104

Minimum Payment – the smallest amount you must pay on a debt to not pay extra fees

Mortgage – a loan for a house

Payday Loan – a high cost loan that must be repaid from your next paycheck

Student Loan – a loan to pay for education

ACH (Automated Clearing House) – A network of computers that coordinate electronic payments or money transfers. In simple terms, this is the group of computers that track who gets paid and who is sending money.

App – An application or program that is downloaded to a phone or computer

ATM (Automated Teller Machine) – A machine that dispenses cash or performs other banking services using a debit/ATM card or a credit card

E-Payments (Electronic Payments) – Are made when goods or services are paid for using the internet instead of cash or a check

One-Time Payment – A single payment

P2P Payments (Peer-to-Peer Payments) – Payment programs in apps or websites and allow you to send money to people using the internet quickly and often for free

Recurring Payment – A payment that happens automatically at regular intervals

 

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