cklds

20/10 rule

A guideline suggesting 20% of income should be saved and 10% spent wisely.

Bankruptcy

Legal status of being unable to repay outstanding debts to creditors.

Chapter 11 bankruptcy

A legal process allowing reorganization of a debtor's finances under court supervision.

Chapter 13 bankruptcy

A legal process allowing individuals to reorganize debts under court protection.

Chapter 7 bankruptcy

A legal process allowing individuals to reorganize debts under court protection.

Closed-End Credit

One-time loans with specific repayment terms for a designated purpose

Collateral in finance

Assets pledged as security for a loan or obligation.

Consumer Credit Protection Act

Regulates consumer credit practices and disclosures to protect consumers from exploitation.

Consumer Credit Protection Agency

Agency ensuring fair lending practices and consumer rights in credit transactions.

Costs of credit

Expenses incurred when borrowing money or using credit services.

Credit Management

Involves decisions on how much credit to obtain and sources to use

Credit Rating

Evaluation of a borrower's creditworthiness by a rating agency.

Credit Report

Detailed record of individual's credit history and creditworthiness.

Credit Score

Number representing creditworthiness based on credit history and financial behavior.

Credit bureau

Agency that collects and maintains credit information on small businesses.

Credit counseling

Guidance provided to individuals on managing debt and credit responsibly.

Creditor

Entity to whom the business owes money for goods or services.

Creditworthiness

Perceived ability of small businesses to repay debts based on finances.

Debt adjustment

Modification of debt terms to improve repayment conditions for borrowers.

Debt consolidation loan

Combining multiple debts into a single loan for easier management and payments

Debt management plan

Plan to help manage and repay debts efficiently

Debt negotiation

Process of discussing terms to settle outstanding debt obligations.

Debtor

Entity that owes money to the business for goods or services.

Discharged debts

Obligations that have been legally forgiven or eliminated.

Equal Credit Opportunity Act

Prohibits discrimination in credit based on race, color, religion, national origin, etc.

Exempted property

Assets that are protected from creditors during bankruptcy proceedings.

Fair Credit Billing Act

Consumer protection law allowing credit card users to dispute billing errors.

Fair Credit Reporting Act

Regulation ensuring accuracy and privacy of credit information in reports

Fair Debt Collection Practices Act

Regulation governing ethical debt collection practices and consumer rights.

Finance Charge

Interest, fees, service charges related to credit extension.

Finance company

A financial institution that provides loans to consumers and businesses.

Grace Period

time allowed before penalty or interest is charged for late payment

Involuntary bankruptcy

A legal process where creditors force a debtor into bankruptcy proceedings.

Loan sharks

Unlicensed lenders who charge exorbitant interest rates on loans.

Open-End Credit

Credit with a set credit limit that can be used repeatedly

Pawnbroker

Lends money in exchange for personal items as collateral

Reaffirmation

The process of confirming a previous agreement or obligation in finance.

Service credit

Recognition of employee's length of service for benefits calculation.

Usury law

regulation limiting interest rates charged on loans to prevent exploitation.

Voluntary bankruptcy

A legal process allowing individuals to eliminate or repay debts voluntarily.

credit history

Record of an individual's past borrowing and repaying behavior.