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Debt Advice Glossary

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Payment holiday

A payment holiday is when a creditor agrees to let you stop making repayments on a debt for a fixed period of time.

Pension

A pension is a long-term investment plan that provides a lump sum or monthly income when you retire.

Pension credit

Pension credit is a means-tested benefit available to people who are over state pension age & have a low income.

Policy document

A policy is a legal document issued to you by an insurance company. It states the terms & conditions of the insurance.

Arrestment (Scotland)

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.

PPI

PPI or payment protection insurance is a type of insurance that’s sold alongside loans, credit cards or mortgages. It covers repayments for a set period of time if you can’t pay because of an accident, illness or unemployment.

Premium

A premium is a single or regular payment made to a company for a product.

Priority debts

Priority debts are ones where, if you don’t make a payment, the consequences can be serious, for example loss of your home or imprisonment.

Private pension

A private pension is a type of pension that you pay & doesn’t include any additional contribution by employers or the Government.