Glossary
Attachment of earnings
If you are not repaying debts as agreed through the Court they can notify your employer to deduct a certain amount before paying your wages which will then be used to repay your debts.
If you are unable to repay your debts it is possible for you to be declared bankrupt. In this case any assets you have can be used to raise money which is then distributed to your creditors.
Creditors may take court action if they have problems communicating with you or getting you to make payments off your loans. This will usually result in additional costs being added to your debt. After considering your circumstances the Court will usually stop interest being charged and agree a regular amount that you should repay and this will be reflected in the Judgment(s). A CCJ will normally be recorded on your credit record for a period of six years.
There are three main credit reference agencies operating in the UK. They are supplied with information about you including the way you handle your existing debts. Any problems will be noted and could stop you getting credit in the future. Each reference agency will supply the record it holds about you for £2* but you need to supply your name and all addresses at which you have lived in the past six years. If the information is inaccurate you can insist on a correction. The main agencies are listed in the Useful Contacts section.
When you apply for credit, a mortgage or even to open a bank account, you may be credit scored. Points will be awarded for previous good credit handling, and you will also benefit from a good job, having lived for a long time in your present home and the like. If you do not meet a minimum “score” you will be declined. Companies do not have to explain why they have turned you down but must give you details of any credit reference agency they have used.
Someone – an individual or an organisation – to whom you owe money.
This usually refers to an organisation that has been appointed to collect money you owe to another firm. In some cases such an organisation will actually “buy” your debt and so replace the firm to which you originally owed money. Some may call at your home but there are laws governing what action they can take.
Debt management companies will help you to manage your debt payments and deal with your creditors.
Someone who owes money.
Being unable to repay your debts.
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