| Credit Limit |
The maximum amount of money you can spend or charge on a particular credit account. |
| Interest |
The cost of borrowing or lending money, usually a percentage of the amount borrowed or loaned. |
| Late Fee |
Additional money that the creditor bills you when you don't pay the minimum payment by the scheduled due date on the statement or pay after the scheduled due date. |
| Over Limit Fee |
Additional money that you pay when you exceed your credit line. |
| Proposal |
Accepted/Active
Proposal has been accepted and is being paid under terms of agreement.
Closed
Account has been completely removed from the program. No further activity, including payments or inquires will take place on this account.
Counter Offer
Proposal was returned unaccepted with creditor requesting additional funds, awaiting authorization from client for increase.
New Proposal Sent
Client accepted the counter offer. Newly revised proposal sent.
Open
Proposal sent to creditor; pending acceptance.
Paid In Full
Clients account has been verified to be paid in full (PIF)
Pending
Proposal sent to creditor; pending acceptance.
Rejected
Proposal was returned unaccepted! The following are possible reasons:
- Invalid account number
- Invalid name on account
- Account open less than 9 months to 1 year
- Balance transfers less than 9 months to 1 year
- Account was on or removed from a debt management program within the past 12 months
Transfer
Account is closed and has been transferred to either an outside collection agency, sold to another company, or transferred to a revised account number.
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| Secured Debt |
A secured debt is a loan where the creditor retains collateral such as a house, or an automobile. If you fall behind with payments on this type of debt, the lender has the ability to repossess the property in order to mitigate their damages. |
| Unsecured Debt |
An unsecured debt generally occurs when you use credit to purchase goods or services in exchange for your promise to pay the creditor back. The most common types of unsecured debt are credit cards and personal loans.
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