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Balance Transfer
A transfer of your existing credit card balance to another credit card. Used when a person wants to move their credit card debt onto a card with a lower interest rate.

Co-signer
A person who is equally responsible for paying back debt under the credit terms

Debt Settlement
You agree to pay a smaller portion of your debt, but promise to pay that entire amount by a deadline.

debt consolidation
When a person combines several loans into one by taking out a new loan (with lower interest) to pay off the debt.

Chapter 7 Bankruptcy
Liquidation- a person sells all their assets in an effort to repay creditors. Debt is completely eliminated but stays on your record for 10 years.

Chapter 13 Bankruptcy
Reorganization- people can keep their assets and have a payment plan to repay debts. Stays on your record for 7 years.

Arbitration
Two people in a disagreement use a 3rd person to help them agree on a solution.

negotiate
back-and-forth communication to reach an agreement.

Garnishment
a legal process that allows part of your paycheck to be withheld for payment of a debt

Lien
A legal order that allows someone to keep the property of a person who owes them money until the money has been paid back.
