Covers known, but irregular expenses

Car registration, holidays, insurance

Calender for each month w/ events 

Types of collateral in installments

puchase money security interest

Types of collateral in installments

non-purchase money security interests

Credit Card Act of 09

Rates terms and fees

extra payments must apply to highest interest first

no universal default

opt in to go over your limit

need based

Gov. pays interest whilein school, during grace period

(grace : 6 m/ after graduation)

not need based

student responsible for all interest

unpaid interest is Capitalized* 

6.8% 

no subsidized loans available 

allows students to postpone payments 

gov. pays interest on subsidized loans. 

temporarily reduces or stops payment 

interest will accrue on ALL loans. 

Contact fraud department of credit bureaus

close any accounts tampered with

file police report

file complaint with federal trad commission

legal term that sets the rules for repossession

can't use bodily force

cannot break open locked garage

cannot take property over objections

cannot be assisted by gov. official w/o court order

Get back personal property

redeem the car (pay off in full)

file for bankruptcy. ch 13 plan

piti

principal, interest, taxes, and insurance

temp or perm change to mortgage terms

banks will because: 

may lose money on foreclosure

may be required to under terms of the loan

past due amount added to principal (increase payment)

tack it on at end

depressed market

sell through a realtor

cancel remaining 

need agreement from lender

eliminate rights of secured creditors

discharge child support, alimony, student loans, court restitution orders, criminal fines and taxes

protect co-signers

remains on report for 10 yrs

score will be low 

obtaining some new credit may be easy

difficult to get mortgage 2-4 yrs

required

must receive w/in 180 days of time filed

non-profit organizations qualify only

30-50

1. family necessities frist; food, unavoidable med. 

2. pay housing-related bills

3. minimum for utilities

4. car loans or leases

5. child support

6. income tax

7. loans w/o collateral are low priority

8. refinancing rarely the answer

pay bills on time

keep low balances

check credit report often

payment history

amount owed on credit accounts compared to avail. credit

all creditors subscribe to one or more credit bureaus 

-the creditor sends infor to credit bureau 

Annual Percentage Rate

APR

1. don't use to finance unaffordable lifestyle

2. avoid using them to make ends meet if in f. trouble

3. don't get hooked on minimum payments

4. Don't run up balance while relying on temp. "teaser" interest rate

5. make payments on time

6. avoid the special services, programs, and goods

7. beware of unsolicited increases by a credit card lender. 

8. don't max out

1. borrowing from friends and family

2. dipping into savings

3. selling assets

1. using credit cards

2. borrowing against your home

1. bouncing checks. 

2.using overdrafts as credit

3. postdated checks 

4. "payday" lenders

1. stop doing business with you

2. report the default to a credit reporting agency

3. begin a lawsuit to collect the debt

traditional payment agreement

(mortgage workout 1)

-make regular monthly payments as due w/ partial payments to cure past due amounts

-12/36 months

-important to have a good budget

-only benefit if financial sit. has improved

temporary interest rate reduction

(mortgage workout 2)

-benefit if financial hardship is temporary

-need a reasonable plan for increasing income

-rates lowered to current market rate or below

recasting of missed payments

(mortgage workout 3)

-delaying missed payments to the end of the loan

-rare due to accounting issues

-most are unwilling to recast more than 6-months of missed payments. 

permanent modification of loan terms 

(mortgage workout 4)

when you have a permanent change in circumstances 

-5 options

1. interest rate reduction

2. extension of loan payment period

3. capitalization of arrears

4. reduction of principal balance

5. deferred junior mortgage- no payment due

Unpaid taxes

judgement lien

condominium fees

lender holding a mortgage on your home

getting caught up on the arrears (missed payments)

-up until 5 days before foreclosure sale

1. read the lease

2. negotiate w/ landlord to reduce what you owe

3. find someone else to take over the apartment

1. change types of services

2. change the way you're billed

3. reduce usage with weatherization/ water conservation

4. reduce amount charged

5. obtaine cash assistance

-forbidden during extreme weather

-elderly/ disabled/ infants

-certain months of the year

- use bodily force

-break open a locked garage

-take property over your objections

-be assisted by gov. official w/o court order 

-seize car from street/ driveway

-use tricks to take car

1. purchase money security interests

-agree to have goods serve as collateral for the debt

2. non-purchase money security interests

-loan isn't used to purchase h.hold goods but creditor insists you put up h. goods for collateral

3. execution on court judgment

-only after suing you and obtaining court judgment 

4. rent to own transactions

1. aggressive collection agency contacts

2. tax refund intercepts

3. wage garnishment

4. federal benefit offsets

5. lawsuits

6. professional license revocations

loans directly from the federal government to borrowers with teh assistance of the school 

-lenders and guaranty agencies are cut out of this process

1. closed school cancellation

2. unpaid refund cancellation

3. false certification cancellation 

4. disability cancellation 

5. death/ sept 11 cancellation 

-discharge debts

-stop foreclosure

- prevent repossession of car/property

-stop wage garnishment

-stop all debt collection harrassment

-prevent utility termination

-filing creates automatic stay

discharge of most debts

-protects against wage garnishment/ enforcement of liens

-added flexibility in dealing w/ secured creditors

-utility termination 

homestead : 15,000

motor vehicle: 3000

utah state university extension

-help you gain control over consumer debt

-need creditor info: balance owed, min. pay, interest rate