Glossary

Debt terms, defined plainly

Short definitions of the words you'll see on your payoff page. No jargon left unexplained.

Interest & rates
APR (Annual Percentage Rate)
APR is the yearly interest rate a lender charges on a balance, expressed as a percentage. It's the number that turns an unpaid balance into a monthly interest charge.
Strategies
Debt Avalanche Method
A payoff order that targets the highest-APR balance first with every extra dollar, while paying every other balance's required minimum.
Strategies
Debt Snowball Method
A payoff order that targets the smallest balance first with every extra dollar and can produce an earlier first account payoff.
Payments
Minimum Payment
The smallest amount a lender requires you to pay each billing cycle to keep an account in good standing. On a revolving account, it can shrink as the balance does, depending on the agreement.