DEFINITIONS

ACH

Automatic Clearing House, a network used for electronic fund transfers to and from bank accounts.

ARP or Annual Percentage Rate

The yearly cost of credit expressed as a percentage rate, separate from the standard contract interest rate.

Balance

The current amount of money outstanding in a bank or loan account.

Bankruptcy

A federal legal proceeding allowing individuals unable to pay debts to restructure payments or liquidate assets.

Budget

A systematic financial plan used to control expenses and manage savings.

Cash Advance

A short-term funding source designed to bridge financial gaps until the next payday.

Credit Bureau

An agency that compiles consumer credit histories and provides reports to lenders (e.g., Experian, TransUnion, Equifax).

Default

The failure to repay a loan according to the agreed terms outlined in the contract.