the amount left over after subtracting, as, for example, the amount owed on a loan (also called principal balance) or the amount in an account
bankruptcy Chapter 7
dealing with liquidation, provides for a court-appointed interim trustee to make management changes, arrange unsecured financing, and generally operate the debtor business to prevent loss.
bankruptcy Chapter 11
deals with reorganization of businesses, provides that, unless the court rules otherwise, the debtor remains in possession of the business and in control of its operation
bankruptcy Chapter 13
deals with debt adjustment or reorganization for individuals, allows people to put forward a plan to repay creditors over time, usually from future income
money lent: a loan given in cash, especially by an employer or credit card company, in anticipation of the borrower's being able to repay it
a card used for making payments; balance must be paid in full when the statement is received
Consumer Credit Counseling Services (CCCS)
a nonprofit agency that gives free advice to people in financial difficulties
credit card companies
bank or business that allows somebody to purchase goods and services and pay for them later, often with interest
provides individuals with revolving open-end credit, which they can draw from repeatedly up to some preset limit
credit reporting agency
a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits.
is a fellowship of men and women who share their experience, strength, and hope with each other that they may solve their common problem and help others to recover from compulsive debting. The only requirement for membership is a desire to stop incurring unsecured debt.
a court action in which a portion of an employee's wage is set aside to pay a debt owed a creditor
home equity loans
home owners can borrow against the appraised value of their already purchased homes
the crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
line of credit
an arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period
the process of taking a business' real assets and turning them into cash, either to pay off debt or to reap a personal profit
low credit rating
a credit rating around 500 or lower is high enough risk that many lenders will refuse a line of credit, and those that do grant one will penalize the borrower with high interest rates and difficult terms.
minimum amount due
If the consumer makes the minimum payment, interest charges continue to accrue on all outstanding balances.
one who places mortgage loans with lenders for a fee, but does not orginate or service loans.
charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
(personal identification number) a number you choose and use to identify themselves to gain access to various accounts
Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers.
The unscheduled partial or complete payment of the principal amount outstanding on a loan, such as a mortgage, before it is due.
a credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available again to use for another purchase or cash advance
loans for which the borrower is required to pledge specific assets as collateral or security
use their knowledge of federal, state, and local tax codes and publications to prepare tax returns and make sure that their clients do not pay unnecessary taxes.
title for goods
a legal document that provides a history of ownership and entitlement by the current owner
Truth in Lending Act of 1968
provides a uniform manner of calculating and presenting the terms of consumer loans to enable you to compare costs so you can make informed choices about credit
an interest rate that moves up and down based on the changes of an underlying interest rate index
when someone with strong established credit signs a contract along with the borrower
a report showing all accumulated credit data on an individual; this is used for granting or denying credit
a numerical rating based on person's credit history that represents their credit worthiness
the total amount that a person is charged for borrowing money; includes interest plus any service charges or insurance premiums
a legal proceeding in which the creditor either sells or repossesses property for failure to repay a debt