wage assignment

Wage assignment is when you agree to let a person or business take money directly from your employment income to pay a debt. This is different from garnishment, which has to be ordered by a court.

unsecured debt

An unsecured debt is money you owe a person or business that is not protected by collateral. This means that your creditor cannot take any of your assets if you do not pay what you owe, unless they take you to court and get a judgment against you. Most credit cards are unsecured debts.

unsecured creditor

An unsecured creditor is a person or business you owe money to that does not have collateral. This means that if you do not pay your debt, this creditor cannot automatically take any of your assets to pay for what you owe. Most credit card companies are unsecured creditors. But an unsecured creditor may be able to take your assets...

settle

You settle a debt when you reach an agreement with your creditor about repayment which will end the debt once you have made the agreed payments.

secured debt

A secured debt is when you owe money to a person or business that is guaranteed with collateral. For example, a car loan is a secured debt because your lender can take your car if you do not pay back the loan.

secured creditor

A secured creditor is any person or business that holds collateral for money you owe them. For example, a mortgage lender is a secured creditor because they hold your house as security for the loan, and can take your house if you do not pay your mortgage loan.

payday loan

A payday loan is a short-term loan (usually 3 weeks or less) that has a very high interest rate. The interest rate on a payday loan is usually much higher than the interest rates charged by credit cards or bank loans. You cannot get a payday loan for more than $1,500. You will usually have to give the payday lender post-dated cheques that...

interest

Interest is a percentage fee that you pay to your creditor in exchange for the money they lend, or that you pay because you didn’t pay a bill on time. For example, you might be charged interest each month on a student loan, credit card balance, or mortgage. In addition to interest, you may also have to pay other late fees.

The amount of...

loan agreement

A loan agreement is a contract between a lender and a borrower, usually in writing. The lender agrees to give money to the borrower, and the borrower promises to pay the money back to the lender. The agreement includes the terms, which means it says what each person promises to do. For example, it says how much money the lender gives, when and...

line of credit

A line of credit is the total amount of money you can borrow from a lender. This term is most often used for a loan agreement with a bank or other financial institution. For example, some people have personal lines of credit.