Credit Flashcards
and bankruptcy chapters
Garnishment
when a creditor takes a portion of your paycheck or money from your bank account to collect money you owe
Credit Card Fraud
a form of identity theft that involves an unauthorized taking of another’s credit card information to make use of it
APR
annual percentage rate, the yearly interest rate you’ll pay if you carry a balance on your credit card
Prime Rate
the interest rate that commercial banks charge creditworthy customers
Down Payment
usually 10-20% cost of the house
20/10 Rule
budgeting technique: person’s total debt should not exceed 20% of their annual income, and their monthly debt payments should not exceed 10%
Credit Solutions
services that help ppl manage and improve their credit
Credit Payment Plan
a plan that helps ppl pay off debts through regular installments
Credit Conseling
advice & guidance from a pro about how to manage debt and improve credit
Debt Management Plan
a plan to repay debts, often with reduced interest rates and fees
Debt Negotiation vs Adjustment
Negoti - reduce debt amounts or rates
Adjust - involves modifying loan terms
Credit Repair
disputing errors on credit reports to improve credit scores
Credit Scams
activities that target individuals seeking credit help and make them pay unnecessary fees
Ch 7 Bankruptcy
liquidation - has to sell assets to make payments
Ch 13 Bankruptcy
a court-supervised bankruptcy that allows people with regular incomes to restructure their debts and repay creditors over time
