Basics Beginner: When You Are Overwhelmed by Debts

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Choose wisely. There is only one correct answer to each question.

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1.
If you have questions about the type of collection practices that are allowed, contact the _______ in your state to see what the state law allows.
Choose wisely. There is only one correct answer.
Consumer protection office. Your state's consumer protection office will have information about state laws governing credit collection practices that operate together with federal regulations.
2.
If you are so far behind with your car payments that you can't catch up, one option is to _______ your car to the dealer to avoid repossession.
Choose wisely. There is only one correct answer.
Surrender. When you voluntarily surrender your car to the dealer to avoid repossession, you may be able to avoid repossession charges and possibly your remaining loan balance.
3.
If you are drowning in debt, it is worthwhile to speak to your creditors to try to negotiate the amounts, repayment term, and interest rate.
Choose wisely. There is only one correct answer.
True. Talking to your creditors when you are overwhelmed with debt may result in positive solutions that can help you.
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 _______.
Choose wisely. There is only one correct answer.
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.
Which of the following is NOT an example of an essential debt?
Choose wisely. There is only one correct answer.
The monthly minimum payment on an unsecured credit card. Though not a good idea, a payment can be skipped without truly severe consequence.