Business / Debt Glossary
Abandonment: The voluntary relinquishment of ownership by failure to use the property, coupled with intent to abandon.
Add On Interest: Add on interest is a method of charging interest. Interest is computed on the total amount borrowed and added on to the principal. Each payment is then deducted from this total amount. Inter . . . View Full Definition
Amortization: Amortization is payments of debt in equal instalments of principal and interest, rather than interest only payments.
Annual Percentage Rate (APR): The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest would be much more than 6% simple interest, even though both would . . . View Full Definition
Arrears: A payment made after it is due is in arrears. Interest is said to be paid in arrears since it is paid to the date of payment rather than in advance, as is rent.
Arrestment Arrestment: Means that money or goods held by a third party are 'frozen'. The most common example is arrestment of funds in your bank account. The third party (eg a bank) may agree to hand the property . . . View Full Definition
Asset: An asset is property that belongs to an individual. Including; real property (land or buildings) and personal property (eg cash, stocks and shares, or vehicles).
Attachment: Means that goods held by the person in debt, eg a car, are 'frozen'. Anything that has been frozen ('attached') can be sold. The money raised is then handed over to the person who is owed the money.
Average Life: The length of time that will pass before one-half of a debt obligation has been retired.
Balance: The amount of money in an account, equal to the net of credits and debits at that point in time for that account is a balance.
Bankruptcy: A form of debt relief, there are two kinds of bankruptcy. Personal bankruptcy: an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their . . . View Full Definition
Beneficial Loan: A loan made by an employer to an employee on which interest is either not charged or is less than the official rate. The difference between the interest charged and the official rate is taxable.
Beneficiary: The Person who is entitled to receive funds of property under the terms and provisions of a will, trust, insurance policy or security instrument. In connection with a mortgage loan the benef . . . View Full Definition
Benefits: Benefits are paid to you by the state and include income support, child benefit, job seeker's allowance, disability benefit, housing benefit, and council tax benefit.
Binding: For example, an agreement, which is binding cannot be legally avoided or stopped.
Budget: A list of all your income and expenditure is a budget.
Budget Deficit: A deficit is the gap between spending and revenue and thus the amount that may need to be borrowed.
Building Society: 'Mutual' non-profit-making institutions set up to lend money to their members for house purchase. Building societies are 'mutual;' because they are owned by their members, and their members . . . View Full Definition
Cap Rate: The discount rate used to determine the present value of a stream of future earnings. Typically this will be an appropriate risk-free return plus a premium to reflect the risk of that specif . . . View Full Definition
Cashcash: Is currency and coins on hand, bank balances, and negotiable money orders and checks.Ceiling The maximum interest rate permitted by state law for a given loan. A ceiling is a common feature . . . View Full Definition
CEO Chief Executive Officer: Is the executive who is responsible for a company's operations, usually the President or the Chairman of the Board.
Classified Property Tax: Property tax which varies in rate depending on the use of the propertyCredit Credit is an agreement in which a borrower receives something of value now and agrees to repay the lender later.
Creditor: A creditor is an individual or a company that is owed money by another person.
Currency: Any form of money that is in public circulation
DAS Administrator: The Accountant in Bankruptcy is the DAS administrator. They are responsible for maintaining the DAS Register which contains details of debt payment programs (DPPs), and for the approval of m . . . View Full Definition