Default
GeneralFailing to repay a debt according to the agreed terms. Defaulting damages your credit score, may trigger collection calls, and can lead to legal action. On-reserve, Section 89 provides some protection against seizure of property.
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Credit score
A number between 300 and 900 that represents how reliably you have handled borrowed money. Lenders, landlords, and some employers check this score. Paying bills on time and keeping balances low are the two biggest factors.
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Garnishment
A legal order requiring your employer to send part of your paycheque directly to a creditor. Garnishment typically happens after a court judgment for unpaid debt. Certain income sources like EI and social assistance have partial protection.
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Section 89 (property seizure protection)
The section of the Indian Act that protects the real and personal property of a Status Indian situated on a reserve from seizure by non-Indigenous creditors. This is why standard mortgages do not work on-reserve — the lender cannot foreclose. It protects you, but it also limits access to certain financial products.