A Flashcards
What is an Additional Principal Payment?
The extra money that is included in a monthly payment above and beyond the required minimum payment. This is applied to the outstanding balance and
allows the debtor to repay the debt faster.
What is Adjusted Balance?
The amount that a debtor continues to owe on a debt after previous payments have been subtracted from the original balance. This does not include interest or fees.
What is Annual Percentage Rate (APR)?
APR stands for the Annual Percentage Rate. This shows the amount of interest on acredit agreement and takes into account all the charges made under the
agreement. It will let youcompare the cost of each deal and work out which is the best value for
you.You can use it to compare one hire purchase agreement with another.But you shouldn’t use
it tocompare different types of credit such as a mortgage with a credit card, as each one will
have different terms.
What is Arrears?
Arrears are another term formissed payments. If you miss one month’s payment to a
household bill or debt you’ll be in arrears byone month.
What is Arbitration?
A form of alternative dispute resolution where the parties and their representatives meet with a third party known as the arbitrator. The Arbitrator helps the parties come to an agreement. Credit card companies often have mandatory arbitration clauses in their contracts.
What is an Asset?
An asset is something of value. This could be a house, a car or an antique.
