Consolidation Debt Loan
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Debt consolidation - Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.
Debt-to-income ratio - Debt-to-income ratio is used by a lender to see if a borrower qualifies for a home loan. A debt-to-income ratio of 28/36 means that no more than 28% of someone's income can go to housing and no more than 36% of one's income can go to the total monthly debt.
Subordinated debt - A loan or security that, in the case of default, would only be paid out after other, more "senior" loans were paid in full. A subordinated debt is therefore carries more risk than a normal debt.
Loan - A loan is a type of debt. All material things can be lent but this article focusses exclusively on financial loans.
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