Choose wisely. There is only one correct answer to each question.
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1.
Payday loans are so called because you are obligated to pay them back when you receive a paycheck from your job.
True. Payday loans are a means of getting fast cash, which you must pay back on your payday. Hefty fees are taken out.
2.
What collection efforts are available to a creditor that obtains a court judgment against you?
The creditor can take steps to garnish your wages and seize assets, such as bank accounts. The creditor can also file a lien against any real estate you own.
3.
Which of the following is NOT an example of an essential debt?
The monthly minimum payment on an unsecured credit card. Though not a good idea, a payment can be skipped without truly severe consequence.
4.
One of the few exceptions to the rule that a creditor must sue to get a court judgment to seize funds from your bank account or place a lien on your property is the _______.
IRS. Federal law allows the IRS to seize the contents of your bank accounts and place a lien on your house for back taxes without getting a court judgment first.
5.
When negotiating with a lender about overdue mortgage payments, the lender may offer you several options to help you avoid foreclosure, including _______.
Rewriting the loan. Many lenders would rather take steps such as rewriting the terms of the loan than foreclosing on the loan.