Browsing Debt Glossary by R

"R" definition range of regularly heard financial term snippets that you may have encountered at some point in your personal finances or while navigating this directory, with a complete description via a individual term link click.

  • Rain Check – A "rain check" is a promise-often informal-to honor in the future a current sale price for an item that is…
  • Rate and Term Refinance – An existing mortgage may be renegotiated through a rate and term refinance, which…
  • Rate-improvement Mortgage – A rate-improvement mortgage is a mortgage with a special clause allowing the…
  • Real Asset – A real asset is a tangible or identifiable asset such as land, construction equipment, or gold-as…
  • Real Property – Real property is a legal term describing certain forms of property, usually distinguished from…
  • Reassign Debt – To reassign debt is to transfer debt back to the original creditor. In the US, debt is often sold as an…
  • Receipt – A receipt is a document that shows a particular sum of money has been received; receipts are usually…
  • Receivership – A receivership is a type of company bankruptcy where in an entity-the receiver-is appointed by the…
  • Recession – A recession is a significant decline in an economy. Recessions last longer than a few months and…
  • Recurring Debt – A recurring debt is any debt obligation that occurs on a continuing basis such that it in effect cannot…
  • Redeem – The word "redeem" has numerous meanings; in finance it typically means to exchange a financial…
  • Refinance – To refinance an existing loan is to pay it off with fund obtained from a new loan. The new loan is usually…
  • Reinstatement – Reinstatement is the resumption of a policy that has lapsed because of nonpayment beyond any…
  • Relocation Mortgage (i.e. Relo) – A relocation mortgage is a type of mortgage offered to employees as an incentive…
  • Renegotiable Rate Mortgage – A renegotiable rate mortgage is a type of mortgage that allows the interest rate to be…
  • Rent to Own (RTO) – A rent to own business combines item rental with possible purchase of rented items. Items…
  • Repayment – Repayment is the process of repaying a loan and is usually used to infer that the loan has been…
  • Replacement Cost – An item’s replacement cost is the cost to replace the item at current market prices. If the exact…
  • Repossession – Repossession is the process of a bank seizing an asset that was used as collateral in a loan or…
  • Repurchase Agreement (i.e. RP, Repo, Repurchase Agreement) – A repurchase agreement involves a borrower…
  • Rescind – To rescind is to cancel, repeal, annul, or otherwise declare void. For example, an outstanding credit card…
  • Reserve – In personal finances, a reserve is a store of funds that is set aside for possible future use. Reserves are…
  • Residual Income – Residual income is a fraction of gross income. It is the amount of income left over after all debts…
  • Retained Earnings – When a company makes a profit it can either disburse some or all of the profit as dividends or it…
  • Retirement – Retirement is that happy point when you can stop working entirely. Or, if you drop the day job but keep a…
  • Return on Investment (i.e. ROI, Rate of Return, ROR, or Rate of Profit) – Any investment either loses or makes…
  • Revenue – Revenue is income that a company earns through its normal pursuit of business-usually by selling…
  • Reverse Mortgage – A reverse mortgage is a loan available to homeowners aged 60 or older (in practice, usually at…
  • Revolving Credit Account – Revolving credit accounts differ from installment credit accounts primarily because they…
  • Revolving Debt – Revolving debt is simply debt incurred on a revolving credit account. For example, nearly all…
  • Revolving Letter of Credit – A revolving letter of credit is a specialized letter of credit that authorizes multiple…
  • Right of Rescission – The right of rescission is the legal right of a consumer to back out of a purchase within three…
  • Risk – Risk is present in all human undertakings because events do not transpire as planned. Risks are events that…
  • Risk Tolerance – Your risk tolerance is a general summary for how much financial risk you are willing to take with…
  • Rollover – In personal finances, a rollover is a transfer of funds from one account to another account and the term is…
  • Roth 401(k) – A Roth 401(k) is a retirement savings plan combining some features of a Roth IRA with some features…
  • Roth IRA – A Roth IRA is a retirement savings plan. With a traditional IRA an individual contributes pre-tax earnings…
  • Routing Number (i.e. Routing Transit Number or RTN) – A routing number is a nine-digit bank code that appears on…
  • Rule of 72 – The rule of 72 is a simple mathematical estimate that determines an investment’s approximate…
  • Rule of 78s – The rule of 78s, also known as the sum-of-the-digits method, is a method of calculating yearly interest…