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Debt Advice Glossary

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Term

The term is the amount of time that a legal agreement, such as a policy, lasts for.

Term assurance

Term assurance is a type of insurance that pays a lump sum out if you die during the term of the policy. If you don’t die during the term, then the policy will finish, with no payout made.

Time order

A time order is a way of asking the courts to give you more time to pay a debt if you’ve missed payment. It can change the amount you have to pay each month or the term left on the credit agreement.

Tracker rate

A tracker rate is an interest rate that follows the increases & decreases of another interest rate. For example, a tracker mortgage may follow the Bank of England base rate.

Transactions at undervalue

A transaction at an undervalue is giving away an asset for less than it is worth. For example, giving away your car to a friend so that it wouldn’t be included in your bankruptcy.

Trust deed (Scotland)

A trust deed is a legally binding agreement, used in Scotland, between your creditors & you to clear outstanding debts you can’t afford to pay. Through a trust deed you pay back an agreed proportion of your debts over a set amount of time, usually 3 years.