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Debt Advice Glossary

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IFA

An IFA is an independent financial adviser. They are individuals who offer advice on financial products & investments. They are separate from any company providing the financial products.

Income

Income is any money you receive, for example wages, pensions or benefits.

Income protection

Income protection is a type of insurance. It provides a regular monthly income to replace your wage if you’re unable to work because of an accident or illness.

Income Support

Income Support is a means-tested benefit for people who are on a low income.

Income tax

Income tax is an amount you have to pay on everything you earn & any pensions or investments you’ve got.

Individual Voluntary Arrangement (IVA)

An individual voluntary arrangement is a legally binding agreement between you & your creditors. Through an IVA, you pay back an agreed proportion of your debts over a set amount of time, usually 5 years or extended to 6 years if you have a certain amount of equity in your property.

Increasing term assurance

Increasing term assurance is a type of life insurance. It pays out a lump sum if you die within the term. The amount that is paid out increases the longer the insurance runs for.

Inflation

Inflation is the rate at which prices for goods & services rise over time.

Inheritance tax

Inheritance tax is an amount your beneficiaries have to pay when you die. The amount they have to pay depends on the amount of assets you leave at the time of your death.

Insolvent

A person or a company is insolvent when they can’t afford to repay their debts in a reasonable amount of time & any assets they own are worth less than the amount of money they owe.

Insolvency

Insolvency is a legal process to get your debts written off. Insolvency solutions include bankruptcy, trust deeds & debt relief orders.

Insolvency Practitioner

An insolvency practitioner is a person who is legally allowed to help people who can’t repay their debts.

Insolvency Practitioner

An insolvency practitioner is a person who is legally allowed to help people who can’t repay their debts.

Insurance

Insurance is a contract between two people in which one party agrees to compensate the other party for any loss or damage caused by risks identified in the terms of the contract.

Insurance

Insurance is a contract between two people in which one party agrees to compensate the other party for any loss or damage caused by risks identified in the terms of the contract.

Interest

Interest is a charge for borrowing money or reward for saving money.

Interest rate

An interest rate is an amount of money that’s added to credit, such as a loan, or paid on a credit balance, such as savings. It is normally shown as a percentage, for example 18.99%.

Interest rate

An interest rate is an amount of money that’s added to credit, such as a loan, or paid on a credit balance, such as savings. It is normally shown as a percentage, for example 18.99%.

Investment fund

An investment fund is a pool of money that’s managed professionally.

ISA

An ISA is an individual savings account where you don’t have to pay tax on the money you save. But you’re only allowed to save a certain amount of money in the account.