D Flashcards
What is Debt?
The amount of money owed.
What is a Debt Collection Agency?
Organizations that chase outstanding debts. They are either employed by creditors to recover the debt or they can buy the debts from the creditors.
What is Debt Consolidation?
Debt consolidation is the term usedfor taking out a loan and using this money to repay other debts.
What is a Debt Management Plan?
A debt management plan is a way of repaying your debts by making reduced payments to your creditors if you can’t afford the full contractual payments.
What is Debt Settlement?
A process of negotiating with creditors in order to get a reduction in the original debt amount and interest rates.
What is Debt-to-income Ratio?
The comparison of monthly expenses to monthly earnings expressed as a percentage.
What is a Debtor?
A debtor is someone who owes money.
What is Deduction from Earnings?
Are also know as Garnishments, The Child Support Agency can take money directly from wages if maintenance payments aren’t made as agreed. No court order is required.
What is a Default?
When payments to creditors are missed, this is a default to the agreement. Recorded defaults can affect chances of applying for further credit.
What is a Default Notice?
A creditor issues a default notice when the terms and conditions of a credit agreement are broken. For example, if you can’t pay your contractual payments.
What is a Deficit Budget?
When your spending is higher than your income.
What is a Dependant?
A dependant is someone who relies on others financially, for example a child.
What is Direct Debit?
An instructionyou give your bank to pay a certain person or company each month. A Direct Debit can be for a variable amount.
What is Disbursement?
A payment, typically one made by a solicitor to a third party and then claimed back.
What is a Discharge?
You are discharged from bankruptcywhen all the conditions of the bankruptcy have been settled and the debts written off.
