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APR-  Also known as annual percentage rate, APR describes the interest rate for the whole year, instead of just a monthly fee/rate.  

APY-  Also known as annual percentage yield, APY describes the annual rate of interest while also considering the effect of compounding (this is where interest has been added to the original payment thereby the added interest will also earn interest.) usually for deposit or investment products.

Bankruptcy-  A legally declared impairment or lack of ability of a person or company to pay it’s creditors.

Checking Account-  An account that can quickly provide frequent access to needed funds, through several different channels.  Such an account is called a checking account in North America.

Collection Companies-  A company hired by a lender to recover funds that are past due or accounts that are in default.

Credit-  The giving of resources from one party to another, where the second party does not reimburse the original party immediately, but instead arranges to repay or return those resources at a later date.  It is any form of deferred payment.

Credit Card-  A card entitling its holder to buy goods and services based on the holder’s promise to repay for those goods or services.

Credit Counseling-  A service offering education to consumers about how to avoid incurring debts that cannot be repaid.

Credit Repair-  The process you can take to improve your credit by 1) disputing or correcting discrepancies on your credit report, or 2) by paying off your debts.

Collateral-  Property or money that you promise as a security for a loan which is given up if you default on the loan.

Debit Card-  A plastic card that allows the holder to withdraw money or have the costs of purchases charged to the holder’s bank account.

Debt-  An amount owed to another person or company.

Debt Consolidation-  Rather than paying off individual bills one takes out a loan with an institution consolidating their loans under one lower monthly payment extending over a period of time.

Default-  When a debtor does not meet his or her legal obligations according to the debt contract, for example, not making a payment or violating a loan condition.

DMP (Debt Management Plan)-  A plan that will help the consumer repay the debts, and will help the creditors collect the money that is owed to them.

Housing Counseling-  Education provided to you by a service that will counsel you on acquiring a home and maintaining a good financial state while paying the costs down.

Interest Rate-  A fee paid on borrowed money.  Typically this is a monthly or yearly charge that is a percentage of your total borrowed money.

Late Fee-  A charge placed against a client by a company or organization for not paying their bill on time.  For example,, if you do not pay your credit card bill on time you will have to pay a fee on your late payment.

Mortgage-  The transfer of an interest in property to a lender as a security for a debt - usually a loan of money.

Savings Account-  A bank account that accumulates interest over time.

Secured Debt-  Debt that, in the event of default, has first claim on specified assets.

Service Charge-  A fee for service.  For example,, using an ATM that is not part of your bank will charge you a service fee to use it.

Unsecured Debt-  A debt that is not guaranteed by collateral.