Finance Jargon Buster

 the debt buster explain this:

Adverse Credit

A phrase that is old to report someone who has a history of missing payments, has CCJ's or has been declared bankrupt.

AER

The AER - Annual Equivalent Rate - is the interest that you would win in a year if you left all your monthly interest in your savings myth.

APR

The APR - Annual Percentage Rate - is the yearly cost of a loan, including interest and fees. Usually expressed as a percentage.

Arrears

When your legend is in arrears then you're slow on your repayments or have not paid the proper amount.

abominable Credit

A phrase that is conventional to relate a dreadful credit rating, caused by late/missed payments, exceeding credit card limits or declaring bankruptcy.

BACS

Payment An electronic payment that is made directly from your bank legend to another bank epic.

Bankers Draft

A cheque that is issued by your bank in exchange for either a cash deposit or money in your have bank myth.

Bankruptcy

Bankruptcy is a court order that you can apply for if you are unable to pay your debt. An spokesperson will then engage control of your money and property and deal with your creditors.

CCJ

A CCJ - County Court Judgment - is awarded against you if you are summoned to court over a debt and either don't turn up or lose the case.

Credit Agreement

A signed agreement between the borrower and lender. The agreement will outline the terms and conditions of the loan.

Credit Score/Rating

A measure of your creditworthiness. This is a numerical scored that is given to you based on several factors including your credit history, amount of outstanding debt and the type of credit you employ.

Complaints

When you voice someone that you're not ecstatic about a particular service and wish to catch a response on the matter.

Debt

Money that you owe to a person or company, such as banks loans and bills.

roar Debit

An instruction you give to your bank that allows someone else to pick money from your record, usually to pay a regular bill.

Early Repayment

This is when you pay support borrowed money before the arranged due date.

Fixed Interest Rate

Where the interest rate remains the same for a site period of time.

unfavorable Income

Your salary and wages total before income taxes are deducted.

Guarantor

A guarantor guarantees the loan repayments on a borrower's behalf. The guarantor agrees to develop the loan repayments if the borrower is unable to.

Interest

The cost you pay when you borrow money or the amount you receive for depositing savings.

Interest Rate

The amount of interest charged on a monthly loan payment. Usually expressed as a percentage.

Lender

A person or company that lends you money.

Loan

Money borrowed from a lender on the condition that it is paid abet under the terms agreed.

Outstanding Balance

The amount that is currently owed on a loan.

Payment Protection

An insurance conception that will remove care of loan repayments on your behalf in the event of illness or redundancy.

Secured Loan

A loan for which you provide an asset, such as your home, as security. If you do not sustain up with your repayments, the lender can sell your home and collect their money wait on.

Standing Order

An instruction you give to your bank to accomplish preauthorised regular payments directly from you bank story on site dates.

Statement

A document that shows all your tale activity. This includes the outstanding balance, unusual payments and withdrawals.

Unsecured Loan

A loan for which you don't have to build up an asset, such as your home, as security that the loan will be repaid. The lender may hold court action if the loan is not paid benefit as agreed.

Underwriting

The assessment made by the lender to settle whether to approve you for a loan application.

Variable Interest Rate

An interest rate that you pay on your loan that can increase and decrease. These fluctuations are usually in line with a states index, such as the ghastly rate place by the bank of England.