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Bankruptcy is a legal procedure for individuals or businesses that cannot repay their outstanding debts.

Foreclosure is the legal process in which a lender takes possession of a property when the homeowner fails to make their mortgage payments.

A Credit Score is a number that tells lenders how likely you are to pay back money you borrow, based on your past financial behaviors.

A balance sheet millionaire is an individual whose net worth, or total value of their assets minus liabilities, is at least $1 million.

A mortgage is a financial bridge that lenders offer to help you buy your home now, allowing you to pay it off over 15 to 30 years.

A recession is a significant decline in economic activity that lasts for months or even years.

Deflation is a decrease in the general price level of goods and services. It's the opposite of inflation.

Your FICO score is a numerical summary of your credit report, a snapshot of your creditworthiness.

Debt is money borrowed by one party from another. Think of it like a financial IOU.

Credit is the ability to borrow money or access goods or services with the understanding that you'll pay later.

Equity represents your share or interest in an asset after all debts associated with that asset are paid off.

Net Worth is the difference between what you own (your assets) and what you owe (your liabilities).

Liabilities are just the debts or IOUs we owe to other folks or companies.