Gnomenclature

Panic buying is a condition that leads investors to neglect due diligence in their haste to buy into investments. It can apply to a particular hot stock or the market in general. It can be summed up as fear of missing out (FOMO). When the price of an investment rises rapidly, investors may believe that they will never have an opportunity to get in if they don’t act immediately.

Panic selling is a condition that leads investors to sell investments as quickly as possible, regardless of what they think they are worth. This behavior can cause price declines to accelerate, either for a particular security or the market as a whole.

A pawn loan is a form of secured loan provided by pawn shops. They allow you to obtain a loan with no formal credit check, but you must provide an item of value as collateral. They often charge high interest and require repayment within a short period. If you don’t repay your loan, you forfeit the item you provided as collateral.

Payday loan is a term to describe a very short-term, very expensive form of borrowing. These are generally available without a credit check because they are for short periods (e.g., until the next payday) but the high cost often requires borrowers to keep rolling them over into a new loan with additional charges.

Payment history is the single biggest factor considered in the calculation of credit scores. Late payments are considered bad, and defaulted payments are even worse. However, failing to use credit at all results in no payment history, which may make it impossible to calculate a credit score.

Priority debt is debt that cannot be discharged through a bankruptcy procedure and must be paid first out of your remaining resources if you declare bankruptcy. Examples of priority debt include child support, alimony, criminal fines, unpaid federal income taxes and federal student loan debt.

Private student loans are educational loans funded and provided by private lending companies such as banks, credit unions and other lenders. Private loans can help fill gaps in your college budget that aren’t met by federal student loans and other forms of aid. However, private student loans are typically more expensive than federal student loans and have stricter repayment terms.

Property tax is a local tax based on the value of the property. It pays for a variety of municipal services. Failure to pay property taxes can result in the property’s being forfeited. Because of this, property tax payments are often included with mortgage payments so the lender can make sure they are paid properly.