|
B |
| Bad credit |
If someone has a
history of defaulting on repayments they may be considered a bad credit
risk for further borrowing |
| Balance |
The total amount
of money in an account - also applies to money owed. |
| Bank account |
See Current
accounts and Savings accounts |
| Bank statement |
A complete list
of transactions from an account, usually sent to an account holder each
month |
| Bankruptcy |
A legal process
of taking over someone's financial affairs when they are declared unable
to repay their debts |
| Benefits |
Money paid by
the Government to people in need |
| Bounced cheque |
A cheque which a
bank is unable to cash usually because the payee does not have enough
funds in their account. |
| Budget |
A list of income
and expenditure for a period of time. Shows money coming in, money to be
spent and any amount left at the end. |
| Building Society |
A financial
institution similar to a bank and offering many of the same services. |
|
C |
| Charge card |
A card which can
be used to pay for goods but the total amount must be paid off at the end
of each month. |
| Cheque |
A printed form
allowing money to be paid to a company or another person from a current
account. |
| Cheque guarantee card |
A card issued by a
bank which guarantees to pay cheques up to a set limit e.g. £100 |
| Clearing |
The process of
moving money from one bank account to another. This can take a number of
days. Money is not available to be spent until the funds have been
cleared. |
| Collection agency |
A company paid
by a lender to recover unpaid debts. |
| Compound interest |
Interest earned
by including previous interest in the calculation. |
| Consumer |
An individual buying
products or services for personal or household use. |
| Council tax |
A tax paid to
the local authority, per household and based on the value of the property. |
| County Court
Judgment (CCJ) |
An order made by
the County Court for money to be repaid. |
| Credit |
Buying goods by
borrowing money and paying back at a later date including interest |
| Credit card |
A card which is
used to pay for goods or services using credit. |
| Credit limit |
The maximum
amount you can spend using your credit card. |
| Credit rating |
A score based on
your previous history of borrowing and repaying money. |
| Credit reference agency |
A company which
stores credit ratings which are used by lenders |
| Credit union |
A non-profit
organisation run by volunteer members to help people save and borrow money
at low rates of interest. |
| Creditor |
A person or
company who lends money |
| Currency |
A system of
money accepted within a country, such as pounds or an area such as
euros. |
| Current account |
A type of bank
account used for every day transactions including paying in wages and
using cheques, standing
orders and direct debits. |
|
I |
| Identity theft |
A crime involving the use
of someone else's identity to obtain money. |
| Income |
Money earned as wages or
received from other sources. |
| Income Tax |
Tax paid on money earned |
| Individual Savings Account
(ISA) |
A type of saving account
which offers tax free interest. |
| Individual voluntary
arrangement (IVA) |
A legal agreement between the debtor and
creditors to repay part of
the debts over a specified period of time. Can be an alternative to
bankruptcy. |
| Insurance |
A financial arrangement in
which an insurer agrees to pay out an amount in the event that certain
losses occur. You pay a regular amount for this insurance cover. |
| Interest |
1) Money paid by the bank
to the holder of a savings or investment account.
2) The Charge for borrowing money.
Interest is expressed as a percentage known as the
interest rate. See also APR
|
