Are credit vs debt protection laws, statutory major intents, and judicial elements adhered to?
What is the relationship of credit vs debt? Do you know the difference between how much you owe (debt) and how much you can borrow (credit)?
You know the most famous difference in comparing credit vs debt. Credit is the ability to borrow money, while debt is the result of borrowing money.
Want to regain control of your financial situation? A credit and debt counseling service can help you understand and solve financial woes.
- Definitions comparing credit vs debt
- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)
- 6 questions on credit vs debt according to Elizabeth Warren’s plan
Definitions comparing credit vs debt
The ability to borrow money is credit, while debt is the result of borrowing money (Pocket Sense). Traditionally, credits (deposits) appear on the right-hand side of a checking account register, and debits (money spent) appear on the left.
A creditor is worse than a slave-owner; for the master owns only your person, but a creditor owns your dignity, and can command it.— Victor Hugo
You create debt by use of credit. A common misconception is that paying off your debt instantly increases your credit score. When you do not manage your debt well, a debt management plan improves your money management skills, increases your financial awareness, and modifies your financial habits.
Now that we have the credit vs debt debacle cleared, let’s dive in further.
According to Merriam-Webster dictionary, the meaning of DEBT is something owed: obligation.
Debt is something, usually money, borrowed by one party from another (Investopedia).
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor (Wikipedia).
How do you define credit?
- Credit is a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest.
- An agreement between a lender and a borrower is credit (Investopedia).
- Credit, to an accountant is a bookkeeping entry that either decreases assets or increases liabilities and equity on a company’s balance sheet.
Banks issue credit cards, the most common form of buying on credit today. These cards repay merchants in full and extend credit to buyers, who repay the bank over time. As a result credit card debt refers accrues due to the accumulated outstanding balances that many borrowers carry over from month to month.
Top 5 quotes on managing credit vs debt wisely
Bankruptcy Law Protection
Did you know that bankruptcy laws protect both the creditor and the debtor? How does it pertain to the credit vs debt relationship?
According to Pittaluga (2000), the bankruptcy law protects borrowers by permitting brief reprieve from the actions of its creditors, whether the debtor is an individual, cooperation or partnership.
The major intent of the law is protecting the best interests of creditors (e.g. returning property rights to them, dispersing monies recovered from the sale of a debtor’s possessions upon default) and debtors (e.g. compensating them for services not received and/or damages).
I love, love, love that you want to use your debit card. But to keep your credit score solid, you still need to keep a few credit cards and use them at least once every few months.— Suze Orman
As demonstrated in Section 362a of the law where the automatic stay or injunction acts of or by creditors are in force, the creditor is allowed to act in several ways.
Creditors may either commence or continue with judicial or administrative proceedings against the debtor, or enforce a judgment contained. They can obtain possession of control of debtors’ property or create, perfect and enforce a lien against debtor’s property.
If you don’t have the money management skills yet, using a debit card will ensure you don’t overspend and rack up debt on a credit card.— T. Harv Eker
See the different credit vs debt application of the law?
Read further here: Automatic stay
The Creditors Hand
Alternatively, creditors can collect or recover a claim against the debtor; set off any debt owing to a debtor; criminal proceedings against the debtor; and commence or continue an action for the collection of alimony, maintenance, or support.
A condition that allows modification, termination or annulment of the automatic stay provision is for the bankruptcy petitions filed in bad faith.
If you have a debt issue or credit card issue, start dealing with it. If you have a tax issue, don’t just say, ‘I’m not going to file.’ There are ways to deal with these things, but you must communicate with your creditors, whether it’s a credit card company or tax department.– Hill Harper
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was passed by Congress and signed into law by President Bush in April 2005. It tightened eligibility requirements and made it difficult to file for liquidation under Chapter 7 bankruptcy.
This bankruptcy reform law gives people a second chance. It is unfortunate that the banking industry forces people to take on more debt and more risk over the years, squeezing families harder to rake in giant profits.
An emphasis on consumer education is among its more ambitious reforms to bankruptcy. Changes instituted by this new law took effect on October 17, 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 amended the U.S. Bankruptcy Code.
Consumer Protection Laws
Consumer protection laws for credit vs debt such as the Fair Debt Collection Practices Act and the Truth in Lending Act get overseen by Federal agencies. The Federal Trade Commission (FTC), makes consumer protection law its primary mission and tries to make sure competitive balance is preserved in matters of national commerce.
By the time most people file for bankruptcy, their credit is already trashed, they have a high debt-to-income ratio – a key indicator lenders look at – and they’ve likely defaulted on more than a few accounts.— Jean Chatzky
6 questions on credit vs debt according to Elizabeth Warren’s plan
- Do current debt reforms laws it easier for people being crushed by debt to obtain relief through bankruptcy?
- Can you exercise your rights to take care of yourself and your children while in the bankruptcy process?
- Why are absurd rules still in force today, making it nearly impossible to discharge student loan debt in bankruptcy?
- How easy is it to start afresh to pick up the pieces to rebuild your financial life when you protect your homes and cars in bankruptcy?
- Why is the bankruptcy system plagued with shameful racial and gender disparities?
- Who actually benefits from all the loopholes that allow wealthy and corporate creditors to abuse the bankruptcy system at the expense of everyone else?
The law on credit vs debt
Despite the fact that honest debtors that reside in or with domiciled places of business, or property in the United States, file for bankruptcy primarily for discharge, some do not get it. The reasons include removing, destroying or concealing property within years of filling; those who lack sufficient explanation of loss or deficiency of assets; failure to comply with Bankruptcy Court orders; et cetera (Pittaluga, (2000).
Therefore, the credit vs debt law protects both the creditors and debtors.
Blitz scale your sport and pursuit of entrepreneurship
At this point, we, at ThExtraordinariOnly, thought that we’d first share some tools with you to liven up your success in life and business.
How focussed are you to take a grip on your life and business? We thought we’d share some of our favorite tools that will help you build the life and business you want.
Decide to put your heart to it and quench your quest for success.
Be smart and rock your world like Starbucks, Amazon, and Nike. Start using these tools we love and recommend today.
Importance of a website to your business’ success
Do you have a business without a website? Then you still don’t know the importance of a website to your business. First all, the Internet Age is in full swing. Your website is vital because you have the capacity to represent your customer and helps build credibility as a business. ✨
We use X20 faster LiteSpeed Hosting by A2 Hosting and we love it. Web hosting plays a key role in the performance and speed of your website. Supporting the newest PHP version, WordPress install comes pre-configured with the turbo fast speed and security settings from the onset. Give your website a boost today and experience outstanding support.
Don’t dare forget to have an automated offsite backup of your website, lest you get screwed. It costs you nothing but a fraction of your time – stuff happens. 🤭
Use the buyers’ search engine
Remember how we desscribed Pinterest’s search engine power with users ready to make a buy decision? If 90% of weekly Pinners make purchase decisions on Pinterest with 77% of weekly Pinners discovering a new brand or product on the platform, and 98% of Pinners going out to try ideas they find, why are you grumbling that you have no market for your products or services?
The award-winning interval pin scheduler, Tailwind, is an official Pinterest and Facebook Partner you can use to schedule fresh pins for days, even when you can’t be near your computer. 📌
Growth hack your business with a miniscule budget
Starting a busines is a costly endevour. Do you want to simplify business success? Digital marketing is one of surefire ways that boosts your firm’s marketing efforts online to gamify your cusotmers’ onboarding. In turn, you strike gold with news sales opportunities and growth hack a new or existing startup or small business.
Thus, if you tap into the most original opportunity of connecting with established influential thought leaders, top ranked social groups, you build your brand FAST and get found online. SuccessCENTER reaches over 200 million weekly with established Social Media Communities in addition to an unrivaled extraordinary smart content marketing SEO system in place. This has got to be one of the easiest ways to expand your Brand, Business, and Community. 💪
What % introvert are you?Did you know that introverts make up 56.8%, nearly half the world's population? – MBTI® #thextraordinarionly #lifesuccess #smallbusinessgoals #startupgrowthhacking Click To Tweet
Guess what? Most of us do not know that introverts have abilities, strengths, gifts, and competenceis that the world needs, now more than ever.
Wait a minute!
Here’s a shocking one! Imagine Joanna Gaines, Abraham Lincoln, Albert Einstein, Barbara Streisand, Michael Jordan, Oprah Winfrey, Max Lucado, Bill Gates, C.S. Lewis, Larry Page, and Meryl Streep are all introverts. Take the introvert quiz – the result will astonish and amaze you.
Recommend a tool
What’s your most effective spelling, grammar, punctuation, and plagiarism checker? Share in the comments section so that you help a blog writer, writerpreneur, and storyteller.
- Find advice and help with credit cards and credit scores, as well as what to do when faced with debt problems from the US government here
- Learn more about understanding debt and credit your rights and responsibilities with tips from the Attorney General’s Office when you follow this link https://www.mass.gov/understanding-debt-and-credit
- Pittaluga, R. Jr., Senterfitt, A., Eidson, P. A. (2000) U.S. Bankruptcy/Insolvency Laws and Foreign Proceedings. Am Montand, den 30. Oktober 2000 fand statt
- Understand how the Debt Settlement Process often negatively impacts a consumer’s credit score on Investopedia https://www.investopedia.com/ask/answers/110614/how-will-debt-settlement-affect-my-credit-score.asp
- Discover more details on current student loan statistics from the Student Loan Hero website
- How can the bankruptcy system become fixed to give people a second chance? Research Elizabeth Warren’s plan on bankruptcy reform.
Share your credit vs debt opinion
What do you think about the credit vs debt fiasco?
What are your thoughts? We are waiting to hear from you! Contribute by adding a comment using the comments section below.
What question do you have about bad credit vs debt?
Share the blog on credit vs debt using the buttons at the bottom of this blog, if you loved it and found it valuable.
Stay up to date when you subscribe to ThExtraordinariOnly by email if you enjoyed this credit vs debt blog post, not to miss out on updates and other blog posts.
Join this Facebook Group to learn and share information with loyal fans of ThExtraordinariOnly.
Clap for us on Medium.
Learn what other people like you have done to crawl outta huge bad credit vs debts forever and turn a new leaf. We promise not to spam your inbox. We are ranked Top 100 small business blogs, websites, and influencers to follow on the Internet. Join now!
Related credit vs debt blog posts you’ll love
- The Top 159 Inspirational Quotes About Debt, Money, Wealth and Business Fuel Your Crawl Outta Debt Now Journey – Live a Full Life of Financial Freedom
- Earn Money Monthly Online By Investing In Simple Internet Tools Today – Consistent, Future Proof, Legitimate and Proven Passive Income Generation for Starters
- List of +37 General and State Grant Opportunities for Women Entrepreneurs – How Long Does it Take to Get a Grant Approved? [Answer to the Most Common Question For Each Grant Applicant]