Credit means having the use of something before you pay for it.

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Are you just making the minimum required payments now? Minimum payments are often set very low, and you may be able shave years off your debt repayment time just by paying extra. If you have multiple accounts, it is better to be systematic and focus your

A set amount is borrowed up front, and you cannot borrow more from it later. The balance is usually repaid in equal installments over a specific period of time. Mortgages and car loans are an example of this type of credit.

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a balance transfer is the transfer of the balance from one credit card (or another type of debt) to another. This could be a good option if you are able to get a card with a lower APR than what you have now. The lower your interest rate, the more of your

You are given a credit limit, and you can repeatedly borrow up to that amount. With a secured credit card, you can usually borrow as long as the account is open.

A charge card is similar to a credit card, but you have to pay the entire balance in full each month (although some card issuers may allow you to pay for specific purchases over time). The credit limit is often very high or even unlimited.

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The APR is the annual rate of interest charged on the outstanding balance. The lower it is, the lower the cost of borrowing. The APR can either be fixed, meaning it never changes, or variable, meaning it fluctuates according to an index.

If you are a homeowner and have equity in your home (owe less on your mortgage(s) than the home’s value), you may be able to use some of that equity to pay off your unsecured debt. Not only is the interest rate on a mortgage usually lower than for unsecur

This is commonly used to purchase a large item, such as a home, car, or appliance. An asset (most often the item purchased) called collateral secures the loan. If you do not keep the monthly payment arrangement, the creditor has the right to reclaim the c

Many financial institutions will issue you a credit card if you put a specified dollar amount on deposit with them. If you stop making payments, the creditor will deduct the amount you owe from your deposit. However, if you make on-time payments for a yea

There are many appropriate uses for credit cards. Because of the protections provided and fact that the money is not immediately deducted from your checking account, it is a good payment option for on-line purchases, airline tickets, car rentals, hotel ro

The number of days, usually 21 to 30, before interest is assessed on new purchases. (It is only given if you paid off your balance in full the previous month. Also, there is usually no grace period for cash advances.)

You may consolidate some or all of your debt into a new loan. Many financial institutions offer unsecured loans specifically for debt consolidation. The advantage is that you have one convenient payment, and if your credit standing is good, you may be abl

This is credit extended without collateral (security). Because of the higher risk to lenders, unsecured credit generally carries a higher interest rate than secured credit.

It is not a bonus for vacations or money for emergencies (that is what savings is for). Most importantly, it is not additional income to get you through a shortfall until the next month. Using it that way may help temporarily, but it will make the next mo

Pay Day loans, Pawn Shop loans and Car Title loans.

Annual, Late, Application and Miscellaneous...

DMPs are administered by credit counseling agencies. You make one payment to them, and they distribute the money to your creditors. For people with multiple accounts, being able to make one payment can be a relief. Furthermore, many creditors reduce or ev