Debt Free Article

Debt Terms Glossary

Letter P

Par

This is known as the face value of a stock or bond. Think par value. That is the term that many debt free advocates use.

Point

This is a one time fee paid ahead of time towards a loan such as a mortgage. Many of our debt free clients have points paid on a mortgage for example – which is tax deductible by the way.

Power of attorney

This is an important situation for any of our debt consolidation customers and debt free advocates need to have in place in their absence should they need a legal spokesperson for them in their absence. For instance, if you are leaving the country and you have legal docs left behind that need to be acted on – you want to give someone you trust a power of attorney to take care of legal business while you are away or incapacitated.

Preferred provider organization (PPO)

This is a type of health care policy. It is the name given to a collection of doctors. Or other health care facilities that agree to accept fees determined by the insurance company providing the coverage to a patient.

Preferred stock

This is a class of stock that pays a certain dividend that has been set into place from the time it was issued to the purchaser. Preferred stocks usually pay less income than bonds of the same company and do not have the price appreciation potential that common stocks typically have. This type of stock is great for corporations because they get tax breaks on dividend income – that is where the investment is better for debt free advocates.

Private mortgage insurance

This type of mortgage insurance is required by lenders for homebuyers getting conventional loans with down payments of less than twenty percent. This insurance is put in place so lenders are protected against defaults. Some of our debt consolidation clients have lenders with these types of loans.

Probate

This is the term that describes the procedure when state courts validate a will’s validity, this way the executer of that will is able to carry out certain tasks involved with settling an estate properly and hopefully timely. There are a few of our debt free customers that are currently dealing with probate issues at this time.

Prospectus

These are the docs that describe securities offering or the operations of a mutual fund, a limited partnership, or some other investment. If you have investments in your debt free game plan, you receive a prospectus for that investment.

Proxy

This debt free term has to do with the formal authorization by a stockholder that allows someone else like management of a corporation or company to vote in their place should they not be in attendance during a voting session.

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