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Debt Advice Glossary

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Capital

Capital is money that you use to generate income or make an investment

Capped Rate

A capped rate is an interest rate or price that can vary but it will have a fixed amount that it won't go above. This often applies to products such as mortgages & energy bills.

Certificate of satisfaction

This is a document from the court as proof that a court order, such as a county court judgment, has been paid.

Charge for payment (Scotland)

A charge for payment is a legal notice served in Scotland. It orders you to pay the debt in full within a certain amount of time.

Charging Order

A charging order attaches an unsecured debt against a property or land. It turns an unsecured debt into a secured debt. If you have a county court judgment your creditor could apply for a charging order.

Child Benefit

Child benefit is a regular (weekly or 4 weekly) tax-free benefit payment made to anyone who is responsible for a child or young person. In most cases it's paid until the child is 19 as long as they’re in full time education or training.

Child Tax Credit

Child tax credit is a means-tested benefit for parents & carers of children & young people. In most cases it's paid until the child is 19 as long as they’re in full-time education or training.

Company Pension

A company pension is a pension plan where you & your employer make a monthly contribution. The amount you pay is tax free. From October 2012 every employee will be automatically opted in to their employer’s pension plan.

Conditional Sale

Conditional sale is a type of credit agreement where you don’t own the goods until you’ve made all of the payments set out in the credit agreement. If you miss payment the goods may be repossessed.

Contents Insurance

Contents insurance is a type of insurance that contributes towards the cost of repairing or replacing possessions if they are stolen, lost or damaged.

Contractual payment

A contractual payment is the amount that you agreed to pay back towards a debt each month when you first signed the credit agreement. If you don’t pay the contractual payment you will fall into arrears & it may affect your credit rating.

County court claim

A county court claim is a legal process your creditors can use to collect an outstanding debt.

County court judgment

A county court judgment is a court order that tells you what to pay towards a debt.

Credit file

Your credit file contains details of the money you’ve borrowed & the payments you’ve made towards a debt. Your credit file will also have information about any types of credit you have applied for.

Credit rating

Your credit rating is the method a creditor uses to assess whether they want to lend you money. All creditors will use different information to assess you & will score you differently.

Creditor

A creditor is a person or a company (usually a bank) who lends you money.

Critical illness cover

Critical illness cover is a type of insurance which provides a lump sum payment if you’re diagnosed with a specific illness.