Many people and consumers find themselves deep into credit before they even know what has happened.

It may be you as a consumer with personal auto loans or a mortgage. It may also be a business person running a small operation or even enterprise. Regardless of it’s a business or an individual it would behoove them to familiarize themselves with the language, terminology as well as standard practices and routines inherent in the “credit industry” If not it may well transpire that they may place themselves at the mercy of their bank, or other financial institution. This is not a good place to be .

Those who have signed for the loan may find themselves in the quandary of being maxed out on their credit cards or perhaps having had a “financial planner” talk their victims into bank loans for questionable investment loans that now have not proved their value as growth or stable investments. And yet now , mainly because they did not fully understand or comprehend what they were getting themselves into , and signing on the dotted line in a flash , they find themselves at the behest of the lending authority or authorities. Bankers, hopefully as you know by now, are not known for their great sympathy and understanding of the financial concerns and troubles of their clients. Amazingly though the bankers and credit officials seem to be speaking almost a foreign language, it is the customers’ sole responsibility to understand and comprehend what they are getting into and what potential consequences and implications may result and even prevail.

First things first one must understand the basic time frames and units of time span involved. The standard practice in the “credit industry” is to use 30 day months – rather than calendar months which of course vary in length of days and time span, 90 day quarters and 360 day years. The implications of this form of counting are that bankers and other lenders of money and cash can demand payment in 30 days – rather than at the end of a calendar month of 31 days. You as an individual may be left in the lurch if money and receivables due are scheduled to be paid, or arrive on the 31’st day of the month or even the first day of the new month. Plan ahead. How will you make you payment or payments when it comes to that 30 day time slot when payment is due immediately?

Next in line in terms of credit concepts and principles which need some explaining and explanation are “prepayment terms”. Among terms commonly used involving the concept and concepts of prepayment in the credit industry are 1) COD which stands for Cash on Delivery. What this means is that when you receive goods payment is due on the spot – a case of cash on the barrel. Next in line is CBD (Cash before delivery). This means that before good are even shipped you must prepay for the item or services. You actually may have to loan money to pay for these goods before they will be sent out on transport. Third consider CWD. CWD is an abbreviation for cash with order. Where a customer has a has of abuse with cash before delivery or COD cash on delivery terms, the seller may even require advance payment when the order for the goods or service is actually placed.

Thus with the understanding that is the role of the consumer or business person to understand the lingo of the finance industry they should be in a much better place and condition when it comes time to make the deal , seek better pricing and credit terms and ultimately replay their financial obligations to the lender or lenders.

Author Bio: Harold Stoffman Edmonton Finance Chrysler 300 MR GREEN Division of Derrick Dodge http://www.derrickdodge.com