A

APR (Annual Percentage Rate)

The APR (Annual Percentage Rate) is the actual percentage of interest that is charged on your borrowings. It includes the total interest rate as well as any other charges, such as legal fees. The higher the APR, the more you will pay.

Arrears

Arrears are payments that have been missed, late or underpaid on any loan or credit agreement. If you are always in arrears then this could lead to a CCJ.

B

Bad Credit

Bad Credit is otherwise known as Poor Credit. It describes any loan or credit which a person has not been paid in accordance to their credit terms and agreements.

Bankruptcy

Bankruptcy should always be regarded as the final option for any debtor. A Bankruptcy Order means that lenders will take any existing assets, such as your house, in order to make some form of repayment.

C

Consolidation Loan

A Consolidation Loan is a single loan which usually pays off multiple forms off high-interest debt, for example credit cards or overdrafts.

County Court Judgement (CCJ)

A CCJ is a decision taken against a person or company, which relates to the money owed to a lender. The Order will ensure that any outstanding payments are met. It is the consequence of the debtor making repayments as was agreed in their terms and conditions.

D

Debt Consolidation

Debt Consolidation is usually one loan which probably consists of the majority of your outstanding unsecured debts, such as credit cards. It is usually one lower monthly amount expanding over a longer period of time.

H

Hire Purchase (HP)

Hire Purchase is a form of credit where you hire an item for a certain period of time whilst paying monthly payments, it is often used for car hire.

Homeowner Loan

A Homeowner Loan is otherwise know as a Secured Loan. It is a loan secured against your house, so if you fail to keep up on repayments, your home will be at risk.

I

Interest Rate

The amount that you are being charged to borrow money, which is usually dependant on the type of borrowing and the lender.

M

Mortgage

A mortgage is a long term loan which is used to help buy a property. The loan is held against the property incase there are any repayment failures.

O

Overdraft

The money which you owe on your current account that has been leant by your bank.

P

Personal Loan

A personal loan is otherwise known as a secured loan. This can be taken out by an individual with a fixed interest rate and over a number of repayments.

R

Remortgage

A remortgage is when you switch your mortgage to another provider. This is usually done so that you are able to achieve a better rate.

Repossession

When a borrower falls so far behind in their payments, that the lender can take a legal ownership of the property.

S

Secured Loan

This is a loan where an asset, such as your house or car, is secured against it. So if you are unable to keep repayments then you will lose that asset.

Sub-Prime

A sub-prime lender is one which is willing to finance people who have adverse/poor credit status.

T

Tenant Loan

A tenant loan is called as an unsecured loan as the tenant does not have any property for a security of payment.

Term

The period of your borrowings.

U

Unsecured Loan

An Unsecured Loan is otherwise known as a Personal Loan, and is leant without having to provide any asset as security. However this usually comes with higher risk to the lender which means that there is a higher interest rate.

UkDebtConsolidationLoan.com is a trading name of Ask Finance Ltd which is registered in England and Wales (company number 4229724), Jackson House, Sibson Rd, Sale, Manchester, M33 7RR. Ask Finance is licensed under the 1974 consumer credit act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.