A waterfall payment is a plan where more entitled creditors receive both interest and principal payments while lower-ranking creditors receive only interest. Here’s how it works.

A creditor is any person or organization that lends money or extends credit, expecting to be repaid with interest and fees. Creditors can include banks, credit card companies, hospitals and even ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of ...

Credit is a binding agreement to pay back borrowed money plus interest. Types of credit include secured (like mortgages) and unsecured (like personal loans). Credit scores, used in lending decisions, ...