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Learn about your debt - still more terms

Debt: The entire amount of money a person owes to lenders. You need to know the who, how much, at what cost.

Deductible: An amount a person must pay first (in addition to the premium) before insurance coverage will pay for a loss. Higher deductibles generally mean lower cost for the insurance.

Diversification: Spreading invested dollars among several different savings or investments to reduce risk.

Expenses: Any money a person spends or gives away. You will need to know your history, to better be able to develop a plan.

Fee: A charge placed on an account for a specific reason. Example: A late fee is placed on a credit card account if payment is not received on time. Learn what potential fees could be added to any accounts you might have, and under what conditions they will be added.

Finance Charge: The actual dollar cost of using credit, which is calculated by the lender.

Financial Planning: A plan for managing all aspects of a person’s resources and money. A budget would be part of the financial planning process.

Fixed Expenses: Expenses that are the exact amount every time. Rent or mortgage payments would be an example of a fixed expense.

Goal: A statement of something a person wants or needs to do. A goal can give you direction in how you want to be spending your money.

Grace Period: The time allowed, usually 20 to 25 days, in which new credit-card purchases can be paid off, if there is no previous balance, without being charged interest.

Gross Income: The total amount of income from wages or salary before payroll deductions.

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