FIND TERM: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- Balance transfer
- Balloon payment
- Bankruptcy
- Bankruptcy Abuse Prevention and Consumer Protection Act
- Bankruptcy discharge
- Bankruptcy dismissed
- Bankruptcy risk score
- Beacon score
- Billing cycle
- Budget
Interesting Facts
Personal bankruptcy filings can include liquidation of assets under Chapter 7 or reorganization under Chapter 13. There are newer limitations on Chapter 7 filings that were enacted by the Bankruptcy Abuse Prevention and Consumer Protection Act.
A balloon payment requires that the borrower submit a final lump sum payment to satisfy a loan balance. If they do not have the money on hand, then they are forced to refinance the loan to avoid default.
Balance transfers are becoming less appealing for credit card borrowers looking for ways to reduce finance charges. Major credit card issuers have removed the upper limit on balance transfer fees. In addition, most of the fees have increased from 3% of the transferred balance up to either 4% or 5%. Some card issuers have experimented with adding annual fees, monthly fees or higher minimum payment requirements on accounts with substantial sums covered under a previous balance transfer. These changes make balance transfers even less appealing.
A budget that eliminates all discretionary spending, such as recreation or other fun events, is more difficult to stick to. Sometimes cutting back on some pricy spending is preferred to cutting it out altogether.
