Glossary of Terms Used on this Site
TOTAL MONTHLY INCOME:
This is the sum of ALL the money you have coming in each month.
This is the money you must spend each month on food, clothing and supplies like electricity, fuel etc.
This is what is left from TOTAL MONTHLY INCOME after you have allowed for ESSENTIALS
MINIMUM MONTHLY PAYMENTS:
Almost every debt has a minimum amount you are required to pay each month. This amount MUST be paid each month before the deadline or you will probably be charged a large fee for late payment and possibly more interest and further charges.
This is the money you have available to pay down your debts once you have allowed for the ESSENTIALS & TOTAL MINIMUM MONTHLY PAYMENT.
Fractional Reserve Banking
Fractional Reserve Banking is the practice whereby Banks are required to keep in reserve only a fraction of the money deposited with them. The remainder can be lent out again.