Personal Finance Ch 6

Proverbs 22:7 The rich rule over the poor, and the borrower is slave to the lender.
Credit Card Blocking Hotels or other service providers use a credit card number to secure reservations and charge the anticipated cost of services.
Usury Laws Establish the maximum loan amounts, interest rates, and credit related fees for different types of loans from various sources.
Debt Limit Overall maximum you believe you should owe based on your ability to meet repayment obligations.
Continuous Debt Method Leaning on debt for 4 solid years
Credit Application Form or interview that provides information about your ability and willingness to repay debts.
FICO Score Range from 300-850. Average is 720.
Deficiency Balance Occurs when money raise by the sale of repossessed collateral doesn’t cover the amount owed on the debt plus any repossession expenses.
Bankruptcy Constitutionally guaranteed right that permits people to ask a court to find them officially unable to meet their debts.
Chapter 13 Designed for individuals with regular incomes who might be able to pay off some or all of their debts given certain court protections.
Chapter 7 Provides for the liquidation of assets with proceeds applied to paying off excusable debts to the degree possible.

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