Debt & Bankruptcy

Front

What is the best way to avoid financial troubles? Options: Living within one's means and not taking on too much debt, Using credit cards for all purchases, Buying things one does not need, Saving money for emergencies

Back

Living within one's means and not taking on too much debt

Front

Why is it important to keep good financial records?

Back

To track spending and identify areas to reduce expenditures

Front

What should be the top priorities in a monthly budget?

Back

Rent or mortgage, utilities, and food

Front

What are the consequences of unpaid debt?

Back

Liens, foreclosures, repossessions, and evictions

Front

What are some warning signs of serious credit trouble?

Back

Feeling overwhelmed by bills and paying bills late, Reaching credit card limits and applying for new credit cards, Using one credit card to pay off another.

Front

What can individuals do if they are unable to manage their debt on their own?

Back

Work with a debt counselor to create a payment plan and work with a debt settlement company to negotiate with creditors.

Front

What is the purpose of consumer credit counseling?

Back

To develop a debt management plan to reduce and eliminate debt

Front

What should individuals consider before choosing a consumer credit counseling organization?

Back

The services offered and the counselors' training and certification, the cost and success rate of the organization, the organization's privacy policies and how they resolve debt problems.

Front

What does a debt settlement company do?

Back

Works on an individual's behalf to reduce the amount of unsecured debt

Front

Why do credit card companies approve debt settlement arrangements?

Back

To receive at least some of their money