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Understanding debt
Getting out of Debt
Question | Answer |
---|---|
Debt | An amount of money that you owe to a person or company. |
Credit card | It allows you to buy goods immediately and pay for them later. |
loan | A sum of money given from one party to another for use over a period of time. The money is paid back according to terms agreed upon by both parties, including the specified interest rates and the timeframe over which it will be repaid. |
insurance | This is a way to protect something that has worth to you which is at risk of damage and loss in value. The insured person pays an amount each month or year (called a premium) to the insurance provider. |
Credit provider | The financial institution that has loaned you the money |
Creditors | People you owe money to |
Repossessed | If you can't afford to pay for something it may be taken beck from you |