Glossary of Financial Terms

3 C's of Credit - Character, Capacity, and Collateral

Adjustable Rate Mortgage (ARM) - A mortgage where the interest rate can change. The rate change is set by some preselected index.

Balloon payment- A payment to pay off the entire amount of remaining principal at a specific time.

Bankruptcy- Legal means of not paying financial obligations. See Proverbs 3:27.

Bounced check- A check that has reached the bank and not enough money was in the account to cover the check.

Brain storming- Practice of thinking and writing down random ideas to develop new possibilities.

Budget- A written statement with estimates for income and expenses for a specific period of time.

Capital- Accumulated goods, possessions, and assets used by a business.

Capitalism- Economic system where people are free to own businesses. Based on the concept that competition best meets the consumers needs. AKA Free Enterprise System.

CCCS- Consumer Credit Counseling Service. A nonprofit that provides advice to consumers on credit and debt related problems.

Certificate of deposit- Saving account that is recorded in certificate form.

Charge off- Term used by financial institutions to describe bad debt.

Charities- An organization that actively strives to improve a situation.

Checking account- An account with a financial institution that allows someone to write drafts (checks) as payments.

Collateral- Something of value that one puts up as security on a loan.

Collector- A person authorized by a business to solicit and receive payments on debts owed.

Communism- Economic system where people are NOT FREE to own businesses. Most or all business is owned by the government.

Consolidated loan- Loan used to pay off other debts. Often pooling several debts in to one for ease of payment and savings in interest.

Contract- An agreement to exchange goods or services for payment.

Cosigner- A person who agrees to pay a debt if another person fails to do so.

Credit bureau- A business that collects information about individuals and business' character and responsibility regarding the use of credit.

Credit card- A Card that identifies a person and allows them to purchase goods and services on credit.

Creditor- A person or business that is owed or lends.

Debt- An amount that is owed to someone or a business. (aka: a self impossed curse)

Debtors prison- No longer legal in United States. Historically they were correctional facilities that were used to reform people who did not pay debts.

Default- Failing to pay a debt or keep an obligation in the prescribed time period.

The deliberate act of deceiving or misrepresenting. For example: Kknowingly lying in a court of law to protect yourself when you have done wrong. "He that walketh uprightly walketh surely: But he that perveteth his ways shall be known." Proverbs 10:9.


	perpetualchurch.com \| home Glossary of Financial Terms 3 C's of Credit - Character, Capacity, and Collateral 401 K Adjustable Rate Mortgage (ARM) - A mortgage where the interest rate can change. The rate change is set by some preselected index. Annual Percentage Rate (APR) - Assets: Things of value that you have. Balloon payment- A payment to pay off the entire amount of remaining principal at a specific time. Bankruptcy- Legal means of not paying financial obligations. See Proverbs 3:27. Bounced check- A check that has reached the bank and not enough money was in the account to cover the check. Brain storming- Practice of thinking and writing down random ideas to develop new possibilities. Budget- A written statement with estimates for income and expenses for a specific period of time. Capital- Accumulated goods, possessions, and assets used by a business. Capitalism- Economic system where people are free to own businesses. Based on the concept that competition best meets the consumers needs. AKA Free Enterprise System. CCCS- Consumer Credit Counseling Service. A nonprofit that provides advice to consumers on credit and debt related problems. Certificate of deposit- Saving account that is recorded in certificate form. Charge off- Term used by financial institutions to describe bad debt. Charities- An organization that actively strives to improve a situation. Checking account- An account with a financial institution that allows someone to write drafts (checks) as payments. Closed end fund Collateral- Something of value that one puts up as security on a loan. Collector- A person authorized by a business to solicit and receive payments on debts owed. Communism- Economic system where people are NOT FREE to own businesses. Most or all business is owned by the government. Consolidated loan- Loan used to pay off other debts. Often pooling several debts in to one for ease of payment and savings in interest. Contract- An agreement to exchange goods or services for payment. Cosigner- A person who agrees to pay a debt if another person fails to do so. Credit bureau- A business that collects information about individuals and business' character and responsibility regarding the use of credit. Credit card- A Card that identifies a person and allows them to purchase goods and services on credit. Creditor- A person or business that is owed or lends. Debit card Debt- An amount that is owed to someone or a business. (aka: a self impossed curse) Debtor- A person who owes money to someone. Debtors prison- No longer legal in United States. Historically they were correctional facilities that were used to reform people who did not pay debts. Default- Failing to pay a debt or keep an obligation in the prescribed time period. Delinquency Dollar cost averaging DRIP Due date Earned income credit Employment agency ESOP- Employee Stock Ownership Program Essential debt Eviction FDCPA- Fair Debt Collections Practices Act FDIC- Federal Depositors Insurance Commission Federal Reserve FTC- Federal Trade Commission Food Bank Foreclosure Fraud- The deliberate act of deceiving or misrepresenting. For example: Kknowingly lying in a court of law to protect yourself when you have done wrong. "He that walketh uprightly walketh surely: But he that perveteth his ways shall be known." Proverbs 10:9. GAO- Government Accounting Office GNP- Gross National Product Goals Gross pay Home equity loan Independence Investing IRA Job fair KEOGH KISS Late fee Lease Lien Lemon Liabilities Life insurance Lottery Mechanics lien Medicare Money Money order Mortgage Multi level marketing Mutual fund Negotiate Net pay Non essential debt Non profit organization Non secured debt Open end fund Outstanding check Owners equity Planning Prepayment penalty Prospectus Re-aged Receipt Recycling Reduced settlement Repossession Resume Risk scoring Roth IRA Savings account Scam Secured debt SEC Self employment Social security Socialism Stewardship Student loan Term insurance Tithe Universal life insurance Welfare Whole life insurance Will