Do Your Own Debt Consolidaton And Save! Know Exactly When You Will Be Out Of Debt, And Sooner Than You Think. No: New Loans, Credit Checks, Monthly Fees, Discussing Your Situation With...
Debt- money that is owed or that one is bound to repay for goods or services.
Debtor?a person who is in Debt and owes money
Credit?A lending facility based on a company's confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment.
Creditor ?The Company, person or organisation who lends a debtor money.
Consolidation ?The act of paying off numerous other loans, credit cards or other debts with a larger new loan.
IVA _Individual Voluntary Arrangement - enables you to make a formal proposal for payment to your creditors through an Insolvency Practitioner. The proposed payments will be less than the full amount of the debt owed but your creditors would be accepting the offer in full and final settlement of their claim. See Here..
DMP- Debt Management Plan - is a simple and effective way to pay your non-priority creditors. Your DMP provider will calculate the amount you can afford to pay after giving consideration to your priority debts - mortgage, utilities, council tax etc and day-to-day living expenses. Any money left is then paid as a single monthly payment and then distributed to your non-priority creditors on your behalf. See Here...
Bankruptcy ?/font> Is a legal procedure for dealing with debts you can no longer afford to repay. It is possible for a creditor to petition for your Bankruptcy if you owe the creditor more than ?50 but it is rare for this to happen in normal consumer debt cases. See Here..
Default - default occurs when a debtor has not met its legal obligations according to the debt contract, e.g. it has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract. Default may occur if the debtor is either unwilling or unable to pay their debt.
Credit Score -a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based on credit report information, typically sourced from credit bureaus / credit reference agencies.
CCCS - The Foundation for Credit Counselling, based in Leeds, is the umbrella charity for the Consumer Credit Counselling Service in the United Kingdom. Through its free national telephone service, ten regional centres and online CCCS Debt Remedy, CCCS is able to help people with debt problems wherever they live.
Payplan -Based in Grantham in Lincolnshire, they offer a national service helping people with Debt. They are the UK's largest provider of free debt management plans. Payplan provides free debt advice and free debt solutions for anyone experiencing financial difficulties.
Citizens Advice Bureau - (CAB) - Citizens Advice and each Citizens Advice Bureau are registered charities reliant on over 20,000 volunteers and need to raise funds to provide these vital services. The majority of advisers are trained volunteers, helping people to resolve nearly 5.5 million problems every year.
Statute Barred - If a lender allows time (6 years and 1 month from default) to pass without receiving any payment an action for recovery may become barred under the limitations act 1980. If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.
Limitations Act 1980 - The Limitation Act 1980 is a British Act of Parliament. It is a statute of limitations which provides timescales inside which action may be taken (by issuing a claim form) for breaches of the law. For example it provides that breaches of an ordinary contract are actionable for six years after the event, whereas breaches of a deed are actionable for twelve years after the event. In most cases, after the expiry of the time periods specified in the Act the remedies available for breaches are extinguished and no action may be taken in the courts in respect of those breaches.
Debt Collection Agency- (DCA) -- A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Some also purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. Creditors typically send debts to a collection agency in order to remove them from their accounts receivable records; the difference between the amount collected and the full value of the debt is then written off as a loss. Debt collection agencies have a reputation for engaging in threatening behavior, harassment, and coercion. However, in many countries, collection agencies are governed by laws that prohibit certain abusive practices. Failure to adhere to such laws may result in lawsuits or government regulatory actions.
Repossession - is generally used to refer to a financial institution taking back an object such as a house or car, that was either used as collateral or rented or leased in a secured debt.
Bailiff - a legal officer to whom some degree of authority, care or jurisdiction is committed. Bailiffs are of various kinds and their offices and duties vary greatly. Often used to recover defaulted debts after a CCJ has been obtained by the creditor.A Bailiff is an official of court and has the power to seize goods and sell them at auction to settle a debt.
County Court Judgement - CCJ - In England and Wales (Scotland has its own legal system), CCJs are legal decisions handed down by County Courts. Judgments for monetary sums are entered on the Register of County Court Judgments, which is checked by credit reference agencies to assess the credit-worthiness of individuals. If the debtor continues to default on a CCJ the creditor may apply for a charging order which would secure the debt on a property. Creditors can also apply for an attachment of earnings which would oblige the debtor's employer to deduct monies from their salary and send them to the court. A Third Party Debt order would oblige a third party who holds money belonging to the debtor (for example a bank) to pay the debt. It is also possible to have the court appoint a Bailiff to collect the debt.
Charging Order - A Charging order, in English law, is an order obtained from a court or judge by a creditor, by which the property (usually a house) of the debtorstands charged with the payment of the amount for which judgment shall have been recovered, with interest and costs, usually after the debtor sells the house.
Statement of Affairs - (SOA) - A written out list of all income, outgoings, debts, and other other financial information that can be used to create a budget, or to negotiate payments with creditors, for example in a DMP or IVA.
Consumer Credit Act 1974 - (CCA) - Consumer protection law in the UK. It requires certain businesses to obtain Consumer credit licences and protects individuals receiving credit up to ?5,000. Appeals under the Consumer Credit Act are made to the OFT. Cancellable agreements have a cooling-off period starting on the day the customer signs. This period is 14 days for goods bought from a mail-order catalogue. Otherwise, it is five days from the day the customer receives either a second copy of the agreement or a separate copy of a notice of cancellation rights. The Act is modified by the Consumer Credit Act 2006
Consumer Credit Agreement - (CCA) - A contract between the debtor and the creditor in exchange for money or services. WIthout a signed CCA a debt cannot be enforced, as there is no proof that the debt legally belongs to the debtor.
Credit Reference Agency - (CRA) - There are 3 credit reference agencies who hold financial information, in the form of a credit file, about everyone. Including payment history, current debt and bank accounts, defaults, CCJs, financial associations etc. Creditors will refer to credit reference agencies when assessing whether they will lend to you while performing a credit search.
Debt Collector - A representative of a Debt Collection Agency, sent to a debtor's home to try and negotiate repayment of a debt. Debt Collectors have no power to demand money, enter your home or remove goods, and are merely representative of the DCA.
Annual Percentage Rate - (APR) -An expression of the interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed. In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted. APR is intended to make it easier to compare lenders and loan options.
Annual Equivalent Rate -(AER) -Also known as effective interest rate, effective annual interest rate, or simply effective rate, is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest included.
Compound Interest - Interest that is earned on the interest that has already been paid, such as with credit cards.
Quidco - A cashback website in which you can get cashback for clicks, sign ups and purchases made through their referral links..
Pigsback- Similar to Quidco but you earn piggypoints which are then used to 'buy' vouchers such a ?0 boots vouchers etc..
Full and Final Settlement -(FFS) -Where a creditor or DCA accepts a reduced figure in agreement with the debtor, to settle the debt and mark it as settled on a credit record.
Partial Settlement - A term DCAs or creditors use meaning that a lump sum has been paid off the debt. The debt will NOT be marked as settled or closed on a credit record and the DCA/Creditor retains the right to pursue the debtor for the remaining balance at any time.
Snowballing - A term coined from the Snowball Calculator used as a faster method of paying off debts by paying one off, then using the money saved to make extra payments on others, hence the term snowball (ie the more you pay off, the more you have to pay off, like a snowball rolling down a hill, it gets bigger the further it goes..).
(Lending) Underwriter - the lovely, caring person at the bank who thoughtfully assesses whether or not you can afford the loan you have asked for... (Thanks snaggles.. )
Secured Debt - A debt where something is specified as collateral to the debt being repaid, such as a house or car. This is usually the case with higher value debts such as mortgages or large loans. In the event of the debt not being repaid, the collateral may be repossessed by the creditor in order to repay the debt.
Non Secured Debt - A debt that has nothing secured as collateral, and no home, car or other item will be repossessed if the debtor fails to repay, unless in the case where the creditor obtains a charging order against the debtors property.
Wombling - The act of collecting discarded tesco receipts, and then taking them to the store to have the clubcard points applied to your clubcard account.
Lightbulb moment - what we MSE'ers and DFW's term as the moment of realisation whereby we need to start to tackle our debt head on instead of getting more.
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A little note from IA.. please bare in mind when looking up these definitions that finance law in England and Wales is different to that in Scotland, and before commiting to anything it is a good idea to get professional advice from one of the debt charities listed below. I have tried to be as accurate as possible but if there's any errors or anything please PM me and I will edit it accordingly. I really hope this can help someone!
Payplan - 08009177823 CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026 CAB – Contact your local office and ask to speak to a Specialist Financial Advisor.
Being under debt is normal. It can happen to anyone and it even happens to the most responsible people. Lets just say that it's a fact of life that's all around the globe. Another fact is that if you are under debt, it's not always your fault. Some people believe that having a bad credit score is the end of the world, while in fact, they are completely wrong.Bad credit is not an issue since you have the ability to acquire bad credit loans. There could be many reasons why a person has
Bankruptcy is a serious issue. In general bankruptcy is a legal action taken against the borrower who fails to repay the loan amount to his creditors. In this case the creditors have the authority to file a bankruptcy petition against the person. As we know that the bankruptcy filing remains in the credit record for at least 6 years hence it can have an effect on your future finances or financial decision which is one of the disadvantages of Bankruptcy. Moreover if you are filing for ban
The term IVA refers to Individual Voluntary Arrangement. It is a legal accord between you and your creditor. Moreover an IVA usually enables you to only pay off a fixed proportion of your debts. An IVA is controlled and managed by a licensed Insolvency Practitioner. The main duty of an Insolvency Practitioner is to allow you make an agreement with your creditors hence avoiding the consequences of insolvency. Basically an IVA works in numerous ways. So before hiring an IVA company you must know a
Individual Voluntary Arrangement or an IVA was brought in by the 1986 Insolvency Act as an alternative to bankruptcy, which is in the favour of both the creditors and the debtors. An IVA company enables the debtors with financial difficulties to come to a mutual agreement with the creditors, rather than having to file for bankruptcy. Through an IVA, those who are facing serious conditions of debts become able to avoid bankruptcy, and at the same time make a fresh start. Those who are con
People who are considering filing for bankruptcy may have already tried loans, consolidations and other methods of getting out of their debts, but failed. Filing for bankruptcy can have serious consequences for the borrower, as the bankruptcy will be recorded on their credit file for 6 years. The need for bankruptcy comes when people are not able to pay off their minimum balances on the credit cards, car payments and home payments. Debtors who are facing financial crisis and who are cons
A promissory note is a legal agreement that is a written promise to repay a debt. It will include how and when the debt will be repaid. It can be through a series of payments, upon demand, or another way both parties can agree upon.
A promissory note will require the full names of the parties, the amount of the obligation, and the debtor's obligation(s). The debtor's obligation includes the terms of repayment, and an interest rate, if any. It can also include what is called an 'accele
For better and stress-free living you need to avoid getting into Debt. There are many people who are under debt pressure, they cant sleep, eat or do anything due to this debt pressure. If you are not able to pay debt on time then it becomes a matter of shame and legal action can also be taken against you. So avoiding debt is a better way of living. Avoiding Debt AdviceHere are few tips for avoiding debt:Dont keep lots of credit cards - The more credit cards you have, the more debt problems you c
If someone is facing the difficulty of insurmountable debt, getting good debt advice is the right solution to the problem. People who face this problem have a tendency to borrow money from numerous lenders. Their inability to pay off the instalments within specified period of time leads to mounting debt day after day. Being in such situations, people badly require debt advice from experts and financial counsellors. Therefore, it is suggested that instead of becoming nervous, getting depressed or
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If you are already dealing with a heavy debt load, you may be asking yourself how it will be possible to get out of debt. When you are struggling with debt issues, it can seem as though there are no ways out, no avenues to make your escape from the burden of debt. When it becomes clear that you've fallen deeply into debt, you may make bad spending choices that will make matters worse. One of the major culprits for this sorry state of affairs is credit cards; it is so easy to live on bo
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