Missed payments on contractual agreements including mortgages, loans, rent etc.

Items you own that have monetary value, includes property, cars etc.

When a credit agreement is signed, these are the payments that you agree to pay each month.

Someone to whom a debt is owed.

A file held by authorised companies containing a person's financial history, including credit applications and money that has been borrowed.

Rather than paying your debts separately, a debt consolidation loan brings your debts together, so you just make one monthly payment and deal with one company.

Someone who owes money

The amount by which monthly expenditure exceeds monthly income.

An informal agreement put in place to repay outstanding unsecured debt to creditors at a reduced rate, when you find yourself unable to keep up with monthly payments.

IVA stands for Individual Voluntary Agreement. An IVA is an alternative to bankruptcy in the form of a legal contract through the county court. An IVA requires you to pay off an agreed amount off of your debts every month. If you maintain that commitment over 5-6 years and then remortgage your home to a maximum of 85%, the remaining debt is written off.

Known as PPI, this is an insurance policy taken out alongside mortgages, personal loans, credit cards and many other types of finance. A PPI policy is designed to cover your monthly finance repayments when you are unable to pay them. A PPI policy will cover you if you are made redundant or if you are unable to work due to accident, illness or injury. Also sometimes known as Loan Protection Insurance or Accident, Sickness and Unemployment (ASU) cover.

Borrowed money that is secured against an asset, e.g. a house or a car. Failure to make payments could mean sale or return of the asset, the money was secured against.

Borrowed money not secured on any asset or property. Loans, credit cards and store cards are all unsecured debts.