A bad credit record, such as CCJ's , repossession orders, IVA's or arrears.

All lenders are required by law to tell you what their APR - Annual Percentage Rate - is before you sign an agreement. The rate quoted on loans and credit cards may be the monthly or annual rate of interest you pay, but the APR figure calculates the total amount of interest that will be paid over the whole term of the loan, so the lower it is the better for the borrower.

The Bank of England's Monetary Policy Committee sets the interest rates to achieve the Treasury's inflation target. The BOE is also responsible for the regulation of the banking industry.

This is a short-term loan to cover what will eventually be covered by long-term finance. Sometimes a Bridging-loan is required by purchaser of a property who hasn’t yet sold their original house.

A points rating used by banks, mortgage companies and other financial institutions that offer loans. An individual or company is assessed for credit worthiness and risk. Your credit report is compiled by credit reference agencies using public records, such as: the electoral roll, court judgments and bankruptcies and also information from other lenders and financial institutions. If you are declined credit the lender should inform you the main reason for this. If the decision was based upon a bad credit report, you should obtain the name and address of the Credit Reference Agency they used. You have the right to view the information contained in your credit report to make sure it is accurate.

These are the agencies that compile credit records of consumers and releases the information to companies offering credit terms, such as Equifax or Experian. You are legally entitled to a copy of your Statutory Credit Report by post for a fee of £2 : Equifax, Plc. Credit File Advice Centre PO Box 1140 Bradford BD1 5US or Experian Consumer Help Service, PO Box 8000, Nottingham NG80 7WF

Yes.

Debt consolidation loans combine all your outstanding debts into one loan in order to obtain more manageable monthly payments. Consolidating can eliminate the high interest charges on credit cards debts.

A Debt Management Plan (DMP) enables you to make reduced repayments to your creditors over a number of years. A debt management company will negotiate the payments with your creditors on your behalf.

The interest rate is fixed for a specific period.

The lender gives you a credit limit which allows you to then decide how much you need to borrow, when you want to borrow it, and how much you repay each month. You will probably pay a higher rate of interest than with a regular fixed rate loan. However, the interest with a flexible loan is calculated daily on the outstanding balance, so if you make an over-payment you will immediately reduce the overall amount you pay.

Your income before any deductions have been made, particularly tax.

A person who agrees to guarantee the debts of another. If the borrower fails to make his/her payments then the guarantor will be obliged to make those repayments.

An Independant Voluntary Agreement is a formal arrangement between you and your creditors - set up by a licensed insolvency practitioner - whereby you agree to make reduced payments towards the total amount of your debt, in order to pay off a percentage of what you owe.

This pays out a lump sum when the policyholder dies and is advised to protect large commitments, such as a house mortgage.

To set one amount against another, such as a repayment against a debt. Offset mortgages set your current account balance and savings against your borrowing. This can pay your mortgage off faster and reduce your interest payments.

The Retail Price Index is an index of the average price of consumer goods and services used to measure the rate of inflation. This differs from the CPI in that it includes housing costs, such as: council tax, mortgage interest payments, house depreciation, buildings insurance, etc

This loan is secured on your property by the lender. This ensures the lender is minimising the risk of losing the money, and as a result is able to offer a Secured Loan at a lower APR than an Unsecured Loan. A Secured Loan is also easier to obtain even with a bad credit history, such as arrears or county court judgements. With secured loans you should be aware that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

All taxpayers are obliged by law to maintain records of all income and capital gains, and need to complete a self assessment if you are: self-employed, a company director, a business partner, an employee with 'complicated' tax affairs, such as capital gains or you pay the higher tax rate, etc.

The Standard Variable Rate is the interest rate the lender charges which fluctuates with the changes in the base rate – this affects your interest payments accordingly.

This is a life assurance policy taken out for a specified period, after which it then lapses.

An Unsecured Loan costs more in repayments than a Secured Loan, but does not carry the risks to your home if you unable to keep up repayments.

A payment of in-work credits to those with low-incomes, and can include childcare costs. Families are eligible for the childcare tax credit if the parent/ parents work for at least 16 hours a week. WTC is also for non-parents as well.