Bad credit :
Term used to describe poor credit or credit risk in loan lending terms. A lender usually decides whether or not to extend loan to a borrower depending on the credit score.

Debt consolidation :
Process of combining various unpaid debts into single loan at lower interest rate. Single lower monthly repayment makes repayment of debts easier and convenient.

Debt management :
The process of making a detailed concrete program to reduce the amount of debt owed and making repayment possible to creditors.

Debt management program :
Debt management program involves joining a financial program from a debt management company. Debt management programme involves negotiation with creditors for lower monthly payment, budgeting and making repayment to creditors.

Unsecured debt consolidation loans :
Mode of debt consolidation which does not involves borrowing against any valuable asset. Unsecured debt consolidation loans usually carry high interest rates.

Creditor :
A lender or financial institution who is provider of credit services. A creditor is someone to whom money is owed.

Debtor :
Someone who owes debt to a creditor.

Bankruptcy :
Legal declaration by a person or company stating their inability to repay debts. Bankruptcy is considered last resort and has severe impact of the credit history. Bankruptcy may not always be the solution, credit counseling and other debt management should be considered.

Credit card :
Any card that can be used to borrow money repeatedly or to pay for goods and utilities.