joint debt
A joint debt is a debt that you owe with another person. For example, a mortgage you co-signed with a spouse or partner is a joint debt. Everyone on a joint debt is responsible for paying back the full amount of the debt.
joint borrower
Joint borrowers are people who sign an agreement to borrow money together. For example, a couple may jointly submit a credit card application or sign a loan agreement. Joint borrowers are equally responsible for paying back the entire amount of the loan. They are sometimes called ‘co-borrowers’. A joint borrower is not the same as a guarantor.
equity
Equity is the value of your asset after you subtract how much you owe on it. For example, the equity you have in your house is the amount of money you would get if you sold your house and paid off all your debts on the house, like your mortgage. If your house is worth $200,000, and you have a mortgage of $150,000, the equity you have in your...
estimate
An estimate is a best guess that you make, based on the information that you have. For example a car repair shop can give a client an estimate of what it would cost to fix their car after they have taken a look at it. Sometimes, the law gives you the right to not be charged much more than the estimate someone gives you.
default
Being in default is when you do not do something you legally agreed to do. For example, defaulting on a loan means that you did not pay back some or all of the money that you owed in the time you were supposed to pay it.
debtor
A debtor is someone who owes money. For example, a debtor can be someone who owes money on a mortgage, car loan, line of credit, phone bill, or credit card.
debt settlement company
Debt settlement companies are businesses that promise to help you get rid of your debts. They usually charge you a fee to negotiate with your creditors and make a repayment plan.
co-sign
To co-sign is to sign a legal agreement together with another person for a loan or other debt. When you do this you are jointly responsible for paying the debt. For example, if you co-sign a lease, you are responsible for paying all of the rent, even if the other person doesn’t pay their part.
credit counselling
Credit counselling is a service for people with money problems. It helps you find the best way to reduce your debt or pay it off. You can also learn how to make a budget and keep to it, and how to improve your credit report and credit score. There are non-profit and for-profit credit counselling services.
Small Claims Court
Small Claims Court is a court that deals with claims for $50,000 or less. You can sue or be sued by a person or a business in Small Claims Court. You do not need a lawyer to go to Small Claims Court, but it is a good idea to get legal help.