Debt Advice Glossary
An administration order is a way of repaying your debts if you can't afford the full payment each month. The courts administer payments to your debts. You need to owe less than £5,000 & have a county court judgment to apply.
AER stands for the Annual Equivalent Rate. This is used to show what you would earn in interest on a savings account. Any interest is added to the balance in your savings account. The next interest payment is then based on the new balance.
APR stands for the Annual Percentage Rate. This shows the amount of interest on a credit agreement, it takes into account all the charges made under the agreement. It will let you compare the cost of each deal & work out which is the best value for you. You can use it to compare one hire purchase agreement with another. But you shouldn't use it to compare different types of credit, such as a mortgage with a credit card as each one will have different terms.
Arrears are another term for missed payments. If you miss one month’s payment to a household bill or debt you'll be in arrears by one month.
Arrestment is a method the Scottish courts can use to repay your debt. The courts freeze any bank accounts you've got & can use any money in that account to pay your debt.
Arrestment of earnings (Scotland)
Arrestment of earnings is a method the Scottish courts can use to repay a debt. Your employer will take money straight from your wage & pay it to the creditor.
An asset is something of value this could be a house, a car or an antique.
Attachment is a way of enforcing an unpaid court order. Sheriff officers will remove goods from outside your house. The goods will be sold & the money put towards your debt.
Attachment of benefits
Attachment of benefits is a method the courts can use to repay a debt. The Department of Work & Pensions will take money from your benefits & pay it to the creditor.
Attachment of earnings
Attachment of earnings is a method the courts can use to repay a debt. Your employer will take money straight from your wage & pay it to the creditor.