Glossary
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Debt
Debt is the state of being in debt. The person who owes the debt
is called the debtor. The person to whom the debt is owed is called
a creditor.
Debt consolidation
A very popular method of settling debts, whereby the debtor takes
up a debt consolidation loan or mortgage to settle the debts combined
into one.
Bad credit
The credit history of a person is called bad credit when the person
has failed to pay a debt in the past.
County court judgements
The county court judgements are drawn by county courts when the borrower does not repay a debt within a specified time period. These too are viewed as cases of bad credit history.
Individual voluntary arrangements
This is an arrangement drawn by the creditor and the debtor with
the help of an arbitrator specifying the manner in which the debts
are to be repaid. These too are viewed as case of bad credit history.
Credit reference agencies
These are private agencies which keep a detailed record of a person’s
credit transactions. The main credit reference agencies are Experian
and Equifax. These agencies offer the credit report of an individual, on the basis of which the lending organizations decide whether they can offer loans and mortgages.
Credit repair
People with bad credit can improve their credit standing by being regular in their credit transactions in the future. Credit repair has a positive impact on one's credit history.
Attachment of Earnings Order
Failure to pay the amount of money specified in the County Court
Judgement compels the creditor to apply for a deduction of the money
at the rate of payments decided by the court from the wages of the
borrower. |
