CeFs - Unit 1 Topic 11

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  • Created on: 16-03-14 16:05
A repayment arranged by country courts in England, Wales and Northern Ireland - people with less than £5,000 in unsecured debt & min one CCJ. Apply to the court and the court decides what they can afford to court, court pays creditors
Administrations Order
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The total cost of borrowing over one year, including the interest charged and any fees
APR (annual percentage rate)
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The things that a person or company owns. Examples of this could include property, jewellery or even financial shares in a company.
Assets
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Moving the balance (total amount owed) on a card from one provider to another.
Balance Transfer
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A situation in which a person cannot pay their debts and is the subject of a court order that shares out their assets between their creditors
Bankruptcy
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A government payment made to individuals that meet specific conditions to help them meet their living expenses. An example could be someone who is unemployed or caring for a disabled person.
Benefits
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A plan of extended incomings and out goings over a set time period such as a month
Budget
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A charity providing free, independent, confidential and impartial advice on citizen's and consumers' rights and responsibilities
Citizens Advice
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A loan used to pay off a number of different debts, meaning that there is then only one payment to make each month, to the loan company.
Consolidation Loan
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In England and Wales, a judgement is issued by a country court to a person who does not respond to a court action or organisation to which they owe money. They affirm that the money is owed.
Country Court Judgement (CCJ)
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A card that allows the holder to make transactions face-to-face, online or over the phone and withdraw money from ATMs. Unlike a debit card the transaction is paid for by the provider and is charged interest and payed back in one go/instalments
Credit Card
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A record of money borrowed and repaid by an individual. These records are held by credit reference agencies and providers will check this when a prospective customer applies for a borrowing product.
Credit History
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A person or organisation to which someone owed money
Creditor
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An organisation to which a person is in debt (debtor) pays what they can afford each month. They deal with the organisations (creditors) what are owed money
Debt Management Company (DMC)
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A detailed plan drawn up by a debt management company (DMC) and sent to an individual's creditors (entities that owe money). It sets out an affordable monthly payment shared between the creditors.
Debt Management Plan
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A Scottish government-run programme similar to a debt management programme
Debt Payment Programme (DPP)
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An order a person in specific conditions applies for if they cannot repay their debts. Generally lasts for one year, during which time no creditors can take action and after which all debts are cleared. Granted by the Insolvency Service.
Debt Relief Order (DRO)
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A person in debt to an individual or organisation (creditor).
Debtor
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Someone who undertakes to repay an financial obligation if the person who took out the obligation in the first place cannot or does not repay it. An example of this would be agreeing to pay someone's rent or loan on someone else's behalf
Guarantor
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A formal alternative to bankruptcy compromising a contractual arrangement with those owed money.
Individual Voluntary Arrangement (IVA)
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A situation where a person cannot repay what they owe because their debts are greater than their assets.
Insolvency
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Available in Scotland and similar to a Debt Relief Order (DRO). An accountant in bankruptcy (AiB) uses the debtor's assets to repay creditors are writes off any unsecured debt after 12 moths.
Low Income, Low Assets (LILA) Bankruptcy
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A consumer information service set up by the government to help people make informed financial decisions
Money Advice Service
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A loan taken out to pay for a property, usually over a long term such as 25 years.
Mortgage
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A facility that allows an account holder to withdraw more money than they actually have in their account.
Overdraft
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A period of at least six months where the amount of goods and services the country is producing is shrinking
Recession
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The term for bankruptcy in Scotland, which applies to people who owe more than £1,500, have not been bankrupt for the last five years and have had a CCJ for payments made against them
Sequestration
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Available in Scotland and similar to an individual voluntary arrangement (IVA). An insolvency practitioner helps people who are insolvent to make affordable repayments , and after three years any outstanding payments are written off.
Trust Deed
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An essential public service, such as electricity, gas, water and sewerage.
Utilities
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Other cards in this set

Card 2

Front

The total cost of borrowing over one year, including the interest charged and any fees

Back

APR (annual percentage rate)

Card 3

Front

The things that a person or company owns. Examples of this could include property, jewellery or even financial shares in a company.

Back

Preview of the front of card 3

Card 4

Front

Moving the balance (total amount owed) on a card from one provider to another.

Back

Preview of the front of card 4

Card 5

Front

A situation in which a person cannot pay their debts and is the subject of a court order that shares out their assets between their creditors

Back

Preview of the front of card 5
View more cards

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