There are many different investments and financial terms to make your head spin. For example, Chapter 7 Bankruptcy- Liquidation of all assets that are not exempt.401 (k) PlanA tax deferred retirement plan that some private corporations offer their employees.A calculation used by the credit card company to determine finance charges along with home loans and other loans. Mortgage rates and the annual percentage yield are taking into consideration when factoring in the total cost of interest on a mortgage.
An organization that administers debt repayment plans for individuals seeking assistance with their credit.Credit HistoryAn individual’s record of paying loans, credit cards and other bills.
A debt instrument or IOU issued by corporations or units of government.Some of the property may be sold by a court-appointed official -a trustee-or turned over to creditors.The history contains a listing of debts, bills submitted to collection agencies, bills paid late, public information such as tax liens and bankruptcies, and a listing of who has requested a copy of the credit report.BudgetA plan developed by an individual for directing and controlling his or her money.
The money you place into the account lowers your taxable income.These items include clothing, food, gasoline, and other goods or services that do not retain their value.Information includes whether the individual pays bills on time or has filed bankruptcy.This could include fire, theft, vandalism, windshield cracking or hail damage.
Some checking accounts pay interest.Cash and cash equivalents include checking accounts, savings accounts, money market accounts, and the cash value of life insurance.Negative information can remain in a credit report for seven years, except for bankruptcy, which will remain for ten years.They take the balance at the beginning of the current billing period and subtract any payments and credits received during the current billing period.Bad DebtCredit used to purchase items that lose value or are no longer around when the bill arrives.
Credit counseling services may be either not-for-profit or for-profit organizations.Credit counseling services may charge a fee that can range from nominal to high.Credit ReportA record of an individual’s credit history that is compiled by credit-reporting agencies.Coverdell Education Savings AccountThis account named after Senator Paul Coverdell (GA) replaces the Education IRA.
The court approves a repayment plan that allows the individual to pay off a default during a three-to-five year period, rather than surrender any property.The contributions are taxed but the earnings used to pay education expenses are not.Checking AccountAn account which allows the holder to write checks against deposited funds.
Caveat EmptorLet the buyer beware.Compound InterestInterest computed on the sum of the original principal and accrued interest.Not all companies charge an annual fee.Debts can be discharged through Chapter 7 only once every six years.The resulting total is used to compute any finance charges.
The finance charge is figured on this average balance. An auto insurance coverage that covers damage to your car from a collision or roll over, regardless of who is at fault.Contributions to the plan may be made through payroll deduction.Account TheftOccurs when thieves use stolen personal information to access an individual’s existing accounts, such as bank and credit card accounts.
Both types of bankruptcy may remove unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs and debt collection activities.Invested assets include the money invested in stock market, mutual funds, and retirement portfolios that include individual retirement accounts.
Automobile Comprehensive CoverageAn auto insurance coverage for damage/loss to your vehicle caused by something other than a collision or roll over.Annual Percentage Rate (APR).
This is the fixed or variable interest rate you will be charged if you carry a balance on your credit card.Bankruptcy (personal)Debts are discharged because that person is not able to repay debts.Both types provide exemptions that vary by state and allow people to keep certain assets.Use assets include real estate, personal property, automobiles and other things an individual may own.It allows parents to make a contribution into the account with an annual limit.
CompensationFull package offered by employer to employee that includes salary or wages and employer-provided benefits.Annual FeeAn amount charged to the credit card holder regardless of whether the card is used.There are Internal Revenue rules and guidelines that apply to this account.AssetsEverything that an individual owns, including cash and cash equivalents, invested assets and use assets.
Credit bureaus that gather and sell credit-related information about individuals to creditors, employers, landlords, and other businesses.Co-signerAn individual with an established credit record who agrees to make the payments on a loan if the borrower does not.The total unpaid balance for each day in a billing period is divided by the number of days in the billing period.
Liability insurance pays for someone else’s financial loss when you are held responsible.Assets may be liquidated to pay creditors, depending on the type of bankruptcy filed.The employer usually matches a portion of your contribution.Generally considered the option of last resort, a bankruptcy stays on an individual’s credit report for 10 years.
A certificate from a bank stating that the named party has a specified sum on deposit, usually for a given period of time at a fixed rate of interest.Also known as straight bankruptcy.403 (b) Plan
A retirement plan similar to a 401 (k) plan that is offered by certain tax-exempt organizations, public schools, such as universities, certain ministers, and some charitable organizations, rather than corporations.Exempt property may include automobiles, work-related tools, and basic household furnishings.Average Daily Balance MethodA calculation used by the credit card company to determine finance charges.Early withdrawal penalties apply to CDs