Debt Glossary

Adverse credit - poor credit history.

Bailiff - a person who is authorised to collect debt on behalf of a creditor.

Bankruptcy - the legal process that occurs when individuals can no longer manage their debt.

Creditor - person or company you owe money to.

Debt - amount of money owing to a company or person.

Debtor - person or company that owes money.

FICO - an acronym formed from the letters of its founder, the Fair Isaac Corporation. It is a number between 400 and 800 that ranks credit worthiness according to a proprietary algorithm invented by the company, with 400 being worst and 800 being best.

Home Equity Loan - obtain a line of credit, secured by the equity in your home.

Insolvency - when a person or business cannot pay their debts.

IRA - Individual Retirement Account.

IVA - Individual Voluntary Agreement.

Lender - person or company you owe money to.

Repossession - a legal process where a lender can take take possession of your home due to non payment of debts.

Secured Loan - A loan in which the money borrowed is guaranteed to be repaid or some asset will be forfeited.