Credit Problems Garnishment of wages Garnishment of wages Creditor takes all or part of paycheck to...
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Credit Problems Garnishment of wages Creditor takes all or part of paycheck to satisfy a debt Repossession Taking back the pledged collateral by the creditor
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Transcript of Credit Problems Garnishment of wages Garnishment of wages Creditor takes all or part of paycheck to...
Credit Problems
Garnishment of wagesCreditor takes all or part of paycheck to satisfy a debt
RepossessionTaking back the pledged collateral by the creditor
Bankruptcy
• Chapter 7—debts discharged after liquid assets are used to repay some of the debt
• Chapter 13—repay all or part of debt in a 3- to 5-year repayment plan; once payment plan is completed, any remaining debt is discharged
Credit Counseling Helps consumers revise budgets, contact creditors to arrange new payment plans, or help find other sources of income
Consolidating Debts Combines all debts into one loan with lower payments• High interest rate due to risk• May entice debtor to take on new debt
Credit Services—Be Wary of Some
Some companies charge a fee to “clean up” your credit rating—they are NOT able to restore a bad credit rating
Consumer Credit Rights
Consumer Credit Protection Act
Equal Credit Opportunity Act
Fair Credit Reporting Act
Fair Credit Billing Act
Fair Debt Collection Practices Act
Right to know costsand terms of credit
Right to fair opportunityto obtain credit
Right to knowwhat’s in your credit file
Right to have billingmistakes resolved
Right to be protectedfrom collection agencies
