 Posted: Tue Jun 21, 2005 1:10 am Subject: Debt Glossary for alphabet "D" |
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Hi,
I have enlisted all the major terminologies related to debt under alphabet D below -
Debt Consolidation:[/color] This is a process where your multiple debts are consolidated into one loan amount. debt consolidation saves you from the harassment of the creditors and also gives you the leverage of repaying your debts in affordable monthly installment. In a debt consolidation program a major percent of your debt amount is eliminated. All the late fees and hidden taxes are also eliminated. Usually one can pay off their debts within a reasonable period of time with the help of such programs. However the time period to clear a particular debt depends on the type and amount of debt a person is undergoing.
Debit Card (EFT Card): A plastic card which consumers may use to make purchases, cash withdrawals, or other types of electronic fund transfers. But with a debit card a person may not take any credit through purchase or cash withdrawal.
Debt-to-Income Ratio: It is the proportion of debt you owe in relation to your income. It is calculated on the basis of debt divided by income.
Deed: A legal document which is a documentation and proof of a particular property, when it is transferred from one owner to another. The deed basically contains a description of the concerned property, the signatures of both the parties and witnesses and is handed over to the buyer at closing.
Deed of Trust: A legal document that conveys title to real property to a third party. The third party holds title until the owner of the property has repaid the debt in full.
Default: If the debtor fails to meet the commitments in legal obligations which are mentioned in the contract, it is known as default.
Deferred Interest: Deferred Interest or Negative Amortization takes place when your monthly repayment towards a loan is not enough to meet the interests due on the loan, and eventually gets added to the original balance of the loan. This is dangerous because the borrower at the ends is obligated to pay a greater amount than he actually borrowed.
Delinquency: When you fail to abide by the loan agreement and miss out on making payments within the time period, delinquency takes place.
Disclosures: Information conveyed to a consumer in context to his financial transactions is known as a disclosure.
Discount Points: It is a percentage of the mortgage loan which is paid to the lender by the borrower in order to lower the interest rate on the loan. Generally one point equals one percent.
Document Preparation Fee: Such fees are given to companies who are appointed to prepare the loan closing documents.
Due-on-Sale Clause: The provision or leverage enjoyed by a lender in a mortgage or deed of trust, where he can claim immediate balance of the loan upon sale of the property.
Regards
Roxette
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roxette
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Joined: 18 Mar 2005
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