14 terms

Credit - Part 4

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lien
a claim upon property to satisfy a debt
collection agency
a business that collects unpaid debts for creditors
garnishment
court-ordered withholding of a specified sum from a person's wages to pay a debt
credit counseling
guidance provided by trained people who help consumers learn to live within their means
repossession
the taking away of property when a borrower fails to make loan or credit payments
bankruptcy
legal relief from repaying certain debts
delinquent
overdue
default
failure to fulfill the obligations of a lona
debt consolidation loan
combines all existing debt into a new loan with more manageable payment schedule
down payment
a portion of the total cost of an item that must be paid at the time of purchase
balloon payment
a final loan payment that is much larger than the regular monthly payments
acceleration clause
a statement in a credit contract that requires you to repay the entire loan immediately if you miss a payment
add-on clause
allows additional purchases to be added to an installment contract, with earlier purchases used as security for later ones
Fair Debt Collection Practices Act
A law that protects consumers from abusive practices by creditors and collection agencies