Topic 7: Dealing with unforeseen events Flashcards
Benefit
Government payments made to people who meet specific conditions to help them meet their living expenses. For example, the unemployed, those people who are unable to work due to being disabled themselves or caring for someone who is.
Citizen’s advice
Charity that provides free, independent, confidential and impartial advice on citizens’ and consumers’ rights and responsibilities
Consolidation loan
A loan used to pay off different debts, meaning there is one payment to make each month to the loan company
Credit history
Records of money borrowed and repaid by an individual, are held by credit reference agencies.
debt management plan
A detailed plan that’s drawn up by a debt managment company (DMC) and sent to the individual’s creditors (people and organisations to which they owe money). It sets out an affordable payment shared between the creditors
Electoral roll
Records of all citizens registered to vote
Equity withdrawal
Additional borrowing based on the difference between the value of a house and the outstanding mortgage.
Exchange rate
The price of one currency in another currency
Financial footprint
Therecord that every financial transaction and person leaves behind them. This includes: outstanding debts, missed payments, loan applications, increases in borrowing and previous borrowing.
Fixed interest
Paying the same rate of interest until the end of the savings, investment or loan term
Limited company
A company where the owners’ financial liability is restricted to their investment. Legally, it’s seperate from the peope who own it, so they arent liable to repay all the business debts from their personal assets
Moneyhelper
A consumer information service set up by the government to help people make informed financial decisions. It’s provided by the Money and Pensions Service and combines 3 other government services: the Money Advice Service, Pension Wise and the Pension Advisory Service
Partnership
A business in which all the business partners share responsibility and profits. Legally, partners aren’t regarded as being separate from the business and are liable for any debts incurred.
Pyaday loan
A loan that’s designed to be taken out for a very short period, which charges a very high APR (Annual Percentage Rate)
Personal Independence Payment (PIP)
A benefit payable to people who need financial support because of a disability or long-term health problems, has replaced Disability Living Allowance.
Social security
Government provisions for people in need of financial assistance, such as benefits.
Sole Trader
A business owned and run by a single person. Legally, there’s no distinction made between the business and the person who owns it, they have unlimited liability for the debts of the business.
Universal Credit
A UK welfare benefit that’s being rolled out in stages and intended to replace the following 6 separate benefits: income-based Jobseeker’s Allowance, income-based Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit
Unsecured lending
Borrowing that’s not secured against an asset, such as personal loans, credit cards and overdrafts.
