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Understanding debt

Getting out of Debt

QuestionAnswer
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
Created by: moneysense
 

 



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