D Financial Terms

Debt Consolidation

Loans

The process of combining multiple debts into a single loan with one monthly repayment, often at a lower overall interest rate. Debt consolidation simp...

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Debt Counselling

Legal

A formal debt relief process regulated by the National Credit Act (Section 86). A registered debt counsellor negotiates reduced repayments with your c...

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Debt Review

Legal

Another term for debt counselling. Once you apply for debt review, you are flagged at credit bureaus and cannot take on new credit until you have comp...

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Debt Snowball Method

General

A debt repayment strategy where you pay off your smallest debt first while making minimum payments on all others, then roll that payment into the next...

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Debt Trap

General

A situation where a borrower takes on new debt to repay existing debt, creating a cycle that becomes increasingly difficult to escape. Common causes i...

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Debt-to-Income Ratio

General

The percentage of your gross monthly income that goes toward debt repayments. Lenders use this ratio during affordability assessments. A ratio above 4...

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Default

Credit

Failure to meet the repayment obligations of a loan. A default is recorded on your credit report and remains for up to two years after the debt is set...

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