Jun 28
Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors.
Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed.
In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization).
Jun 28
Credit report is a record of an individual’s or company’s past borrowing and repaying, including information about late payments and bankruptcy.
In the U.S., when a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau. The credit bureau matches the name, address and other identifying information on the credit applicant with information retained by the bureau in its files.
This information is used by lenders such as credit card companies to determine an individual’s credit worthiness; that is, determining an individual’s willingness to repay a debt.
Jun 25
Is payday loan our real and only life safer? According to wikipedia, Critics blame payday lenders for exploiting people’s financial hardship for profit.
They say lenders target the young and the poor, particularly those near military bases and in low-income communities. They also say that borrowers may not understand that the high interest rates are likely to trap them in a "debt-cycle," where they have to repeatedly renew the loan and pay associated fees every two weeks until they can finally save enough to pay off the principal and get out of debt.
Critics also say that payday lending unfairly disadvantages the poor, compared to the middle class who pay at most 25% or so on their credit cards.