| A | B |
|---|
| collection agency | a business that specializes in debt collection. |
| repossession | the taking of collateral when a borrower fails to repay a loan. |
| foreclosure | the forced sale of property. |
| lien | a legal claim on a borrower’s property by a creditor who is owed money. |
| garnishment | a legal procedure requiring a portion of the debtor’s pay to be set aside by the person’s employer to pay creditors. |
| bankruptcy | a legal state in which the courts excuse a debtor from repaying some or all debt. |
| Chapter 7 bankruptcy | eliminates most types of debt and stays on a credit report for 10 years. |
| Chapter 13 bankruptcy | bankruptcy permits debtors with regular incomes to pay all or a portion of their debts under the protection and supervision of the court. |
| credit counseling service | an organization that provides debt and financial management advice and services to people with debt problems at little or no cost. |
| loan shark | someone who lends money at excessive rates of interest. |
| easy-access credit | a short-term loan at a high interest rate that is granted regardless of the borrower’s credit history. |
| payday loans | a short-term, high-interest loan that usually must be repaid on the borrower’s next payday. pawnshop A pawnshop is a business that gives customers high- |
| rent-to-own | an arrangement in which a consumer pays rent for the use of a product and eventually owns it. |
| title loan | a short-term loan made using a borrower’s car as collateral. |
| credit fraud | the fraudulent use of someone else’s credit information. |
| identify theft | a form of credit fraud that involves stealing someone’s personal information and using the information to commit theft or fraud. |
| phishing | a crime committed online with e-mails that seek your personal information. |
