APMacro: Credit Protection

credit-protectionYoung adults sometimes make bad choices about spending. They are sometimes inclined to live beyond their means and run up big debts. Excessive credit card debt is a common problem. So are high monthly payments on car loans, high monthly payments for rent, and an inability to save money. For young couples, financial problems are often a troublesome factor contributing to break-ups and divorce.

Financial problems, however, are not reserved for the young. People of all ages can face financial problems. An unexpected illness, the loss of a job, a divorce, or the loss of child care—these and other difficulties can tip a household into financial trouble. Several state and federal laws are designed to protect credit consumers from dishonest business practices. Among the more important consumer-credit protection laws are the Truth in Lending Act and the Fair Credit Reporting Act.

And then there are the scheme artists and swindlers. Unfortunately, the credit and finance industry sometimes attracts unsavory sorts who prey on people’s greed or financial fears. If you receive a phone call describing a fantastic loan and a debt repayment plan that sounds too good to be true, it probably is. Hang up the phone. And try to avoid businesses that provide financial services but at very high costs, such as payday loans and rent-to-own plans.

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