Repossession - When a car loan is in default the collateral (the car itself) must be returned to the lender. When the buyer returns it himself it is a “voluntary repossession”, otherwise if they come and get it then it is involuntary. Both types hurt your credit badly and should be avoided if at all possible.

Revolving Debt - Debts that fluctuate in amount due to usage are called revolving debts. Credit cards and lines of credit are revolving debts because the amount you pay is based on what you owe, both of which can change each month.