The Basics of Credit Card Debt and Bankruptcy Defining Credit Card Debt Accumulating debt on your credit card is akin to taking a loan from your card’s issuer which is instantly used to make purchases. This type of debt falls under the umbrella of unsecured debt, signifying that there is no collateral to secure the…
What is loan principal? When you get a loan, the money you borrow is called the principal. The principal is the amount of money that you owe to the lender. In addition to paying back the principal, you will also have to pay interest on the loan. The interest is what the lender charges for…
Separating Your Personal and Business Finances You can separate your personal and business finances by using several options, including splitting the difference between what you owe to cover your personal and business expenses. You could also use an online service like Mint to track your transactions, making it easier for you to stay on top…
How does cross collateralizing a loan work When you borrow money, the lender will usually require some collateral. This allows them to recoup their losses if they cross default on the loan. Cross collateralization is when you use more than one asset as collateral for a loan. For example, if you have a home equity…
What are debits and credits? In accounting, debits and credits are ways of recording financial transactions. Transactions are recorded as either a debit or a credit, depending on what is happening in the transaction. What does debit mean? Debits are typically used to record assets, while credits are typically used to record liabilities. For example,…
