Learn the Jargon

Assets – items that you own that have a monetary value, including property, car, stocks, antiques and savings.

Attachment Of Earnings – if you fail to pay debts from a CCJ, a creditor can apply to the courts to have money deducted direct from your wages.

Bailiffs – person employed by the court to enter your property to repossess or seize assets to cover outstanding debts.

Bankruptcy – a formal legal procedure that allows you to write off all your debts, see Debt Solutions

CCJ – or County Court Judgement is an order made by a court requiring a debtor to pay what is owed to a specific creditor.

Creditor – a person or company who lends you money that you agree to pay back, such as a bank, building society or credit card company.

Debt Collection Agency – a company employed by a creditor to chase outstanding debt, with relatively limited powers.

Debt Management Plan – an informal agreement with creditors to reduce monthly debt repayments, see Debt Solutions

Debtor – an individual or company who owes money to a creditor and is required to make repayment.

Debt Relief Order - A piece of government legislation introduced in 2009 to give a 12 month breathing space.

Default Notice – a notice issued by a creditor to confirm you have broken the original agreement.

Equity – the value that an owner has in a property after outstanding credit and charges have been deducted.

Full And Final Settlement – an offer of partial repayment to your creditors in one lump sum, see Debt Solutions

Gross Income – your total income before deductions such as Income Tax and National Insurance are made.

Insolvent – having insufficient funds to meet your credit commitments and debts.