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CHAPTER 11
Glossary of Terms
Arrears (also Arrearages): Any loan payment or debt that is past due. It is most often used to describe unpaid child support or alimony.
Association of Credit Counseling Professionals (ACCPros):
A trade organization established by credit counseling agencies. FFEF is a member of this organization.
Association of Independent Consumer Credit Counseling Agencies (AICCCA): Trade organization established by credit counseling agencies whose mission is to “promote and ensure the continued operation and viability of credit counseling and debt management organizations.” FFEF is also a member of this organization.
Balloon payment: A final lump sum payment on an installment contract, such as a car loan; significantly larger than the earlier payments and usually intended as a way of making initial payments affordable for the borrower.
Bankruptcy: Legal proceeding in which an individual or business is allowed to discharge all debts and liabilities. The actions of debt collection agencies often force the debtor into bankruptcy rather than settling outstanding accounts. (See page 44.)
Collateral: Property owned by a borrower which is pledged as security that a debt will be repaid. (See secured and unsecured debt, page 11.)
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