 Posted: Tue Jun 21, 2005 4:42 am Subject: Debt Glossary for alphabet "S" |
|
|
Hi,
I have enlisted all the major terminologies related to debt under alphabet S below -
Secured Debt: These types of debts are usually backed up by collateral in case the borrower fails to pay a loan within the given time. These loans are taken at times the borrower is undergoing a financial crunch. Auto loans, mortgages, are some important examples of secured debts.
Security: This is same as collateral which is given as a supportive materialistic assurance, (equivalent to the present loan amount) to creditor in case a borrower fails to repay a loan amount. The creditor in that case can sell of this additional property to retrieve his money.
Security deposit: This is an additional assurance for a lender, in case the borrower defaults while repaying the loan.
Servicing: A complete evaluation and updated transaction kept by a lender during the post loan period. This includes collection and payment of taxes, insurance, property estimations and similar type of dealings.
Simple Interest: The interest rate that is charged on the basic amount that is borrowed. This interest rate is not compounded and thus is considered to be the most lucrative.
Sign up fee: When a customer gets registered with a particular company to avail the required services, the company might end up charging a certain amount of money from the customer. This is known as sign up fee. However, now most of the companies do not charge the customers anything as sign up fees.
Student cards: These are credit cards especially designed for the use of a student. These cards have a considerably low purchase limit on them and a lower interest rate for the benefit of the students. The students with a respectable credit history find these cards convenient for their limited use.
Regards
Roxette
|
|
roxette
Moderator
Joined: 18 Mar 2005
Posts: 4140
Debtcc Points: 50410
|
