Glossary
A
| administrator | person appointed to manage the property or finances of another |
| arrears | overdue payments |
| asset | money or property that a person or company owns or has a right to, from which a benefit can be derived |
| attachment of earnings order | a court order that requires money to be taken from wages (prior to an employee being paid) or a bank account to pay a debt. also referred to as a garnishee order. |
B
| bankruptcy | a legal process through which a person is declared unable to pay their debts, and control of most of their debts and assets is handed over to a bankruptcy trustee |
| bona-fide | something truly represented, or presented in good faith |
| bond loan | an interest-free loan from the Victorian Government to assist low income earners pay the security deposit when they enter a new lease agreement |
| budget | a document that compares your amount of income with the amount of your expenses |
| bundling | the packaging of a range of services onto a single account (for gas and electricity or phone and internet for example) Bundling often offering discounts compared to individual bills for each of the component services |
C
| cash advance | a loan taken out against a line of credit or credit card, typically imposing higher-than-normal interest charges |
| Centrelink | the Australian Government agency responsible for delivering a wide range of services and payments to Australians who find themselves on a low income or without and income. |
| Child Support Agency | the organisation that administers Australia’s Child Support (sometimes called Child Maintenance) Scheme under which separated parents contribute and transfer payment for the benefit of their children |
| concession | a reduction of costs compared to the amount required under standard conditions, and made available to people on reduced incomes by governments and providers of essential services |
| Consumer Action Law Centre | a community legal centre that provides free legal advice and representation to vulnerable and disadvantaged consumers in Victoria |
| Consumer credit law | uniform legislation throughout Australia governing consumer credit protections |
| contract variation | a change to the terms of a contract, especially a credit or loan contract |
| court order | an order issued by a court that requires a person to do or refrain from doing something |
| creditor | a party who is owed money and can be a person, organisation or a company |
| credit | the practice of obtaining goods and services now and paying for them later, using a loan or a credit card from a bank or financial institution. Money or goods and services obtained on credit usually need to be repaid within an agreed time-frame and interest payments usually apply |
| credit insurance | a policy that covers you if you are unable to meet payments on your loans and other credit purchases |
| credit rating | an ongoing record of a person’s credit history used by creditors to assess the risks associated with providing loans and credit to individuals |
D
| debit card | a bankcard used to make an electronic withdrawal from funds in a bank account |
| debt | a sum of money that is owed to another person or organisation |
| debt consolidation | to bring debts that were previously held under arrangements that were independent of each other together under a single loan |
| default | failure to meet financial obligations, for example with respect to loan repayments |
| deferred payment | a payment excused from payment on the due date by agreement between the person who owes the money and to person or organisation to whom it is owed |
E
| emergency relief | provision of essential food and shelter to people in circumstances of serious hardship |
| equity | the current market value of property minus the outstanding mortgage balance |
| eviction | a legal process by which a person is removed from rented premises because of a dispute with the landlord |
| ex-gratia | as a favour; not compelled by legal right |
F
| financial advisor | see financial planner below |
| financial counsellor | a person trained to provide a free, impartial and confidential service to help people to manage their debts |
| financial hardship | a situation where a person wants to pay their bills and debts but has insufficient money to do so |
| financial planner | a licensed person who provides advice on investment and the management of assets to maximise returns |
| forced bankruptcy | bankruptcy initiated by a creditor (or creditors) who has/ve been unable to recover debts owed that together total at least $2000 |
H
| hardship | see financial hardship |
| hardship variation | a change to the terms of a loan or credit contract made to make payments more affordable in the short-term for somebody with reduced or insufficient income to make normal payments |
I
| industry ombudsman | a dispute resolution body established by government to investigate and resolve disputes between consumers and participants in the particular industry the ombudsman represents |
| in lieu | in pace of, instead of |
| insolvency | the condition of a person having insufficient assets for the full payment of their debts |
| insurance | a guarantee against risk of loss or harm, usually purchased through payment of a premium |
| interest | a sum paid for the use of money borrowed |
J
| judgment debt | a court order that requires the payment of an outstanding debt that a creditor has taken somebody to court to resolve and the court has ruled in the creditor’s favour |
L
| landlord | a person who owns and leases property to another |
| legal action | any behaviour authorised by law and concerning its administration |
| lender | a person or organisation (including bank, credit union, finance company or other financial institution) that provides money on the understanding it will be repaid with a consideration on agreed terms |
| liquid assets | cash or other assets, such as shares, that can be readily converted to cash |
M
| margin call | a lender’s requirement that a payment be made by a borrower to maintain the value of a specific investment portfolio value relative to the amount borrowed to invest |
| margin loan | money borrowed to invest in shares or managed funds |
| mediation | a no-cost process where parties to a dispute are brought together to resolve their issues by agreement with the assistance of an appropriately experienced mediator or member of a tribunal |
| minimum payment | the smallest amount to be paid on a bill or loan so that additional costs and charges are not applied. This can be as low as two percent of the total debt and is usually not enough to pay off the loan within a reasonable time |
| mortgage | a loan to purchase a home where the property is used as security in the event of repayments not being made according to the contract |
| mortgage foreclosure | when a creditor seeks to gain the borrower’s equity in a mortgaged property by forcing the sale of the property because mortgage payments have not been made within the proper time |
| Mortgage Relief Scheme | a short-term interest free loan available from the government to Victorians experiencing financial hardship |
N
| National Personal Insolvency Index | a list containing information on proceedings and administrations under the Bankruptcy Act 1996 that identifies all people who have been bankrupt |
O
| ombudsman | a government funded dispute resolution service for an industry sector |
P
| payday loan | a very short-term loan for an immediate need |
| payment arrangement | an agreement as to how a debt or bill will be paid |
| Possession Order | a court document that authorises the control over a tangible asset coupled with an intention to take hold over it |
| preservation age | the minimum age you must be to access your superannuation fund; usually at least 55 years |
R
| redundancy | the situation where a job is no longer required to be performed by anyone |
| refinance | to pay off an existing loan by obtaining a new loan, usually one with a lower interest rate |
| repossess | take back possession of goods, often held as security, because of non-payment of loan |
| retrench | to finish an employment arrangement with a worker as result of the particular job they have performed being no longer required by the business |
S
| secured loan | a loan where the property being purchased with the borrowed funds (or other specified property) can be seized by the lender if repayments are not made by the borrower according to the loan agreement |
| security | something of value identified to be at risk of seizure and sale by the lender or creditor if the borrower does not comply with the contract requirements for repayment |
| service provider | a business that supplies and delivers services for which a consumer agrees to pay |
| sheriff | a person who administers justice by executing warrants under the direction of the courts; sometimes called a bailiff |
| statute-barred debt | a debt that is not enforceable by the creditor because it is more than six years since there has been any attempt to collect outstanding money |
| superannuation | funds taken out of wages and salary and invested to eventually serve as income during retirement |
T
| tangible asset | something real or actual; something that can be touched |
| termination payment | a payment received on ceasing to work for an organisation. It includes monies owed for accrued benefits and a government compliant allowance for redundancy if applicable |
| tenancy agreement | an agreement between a tenant and a landlord that satisfies the provisions of the Residential Tenancies Act |
| tenant | a person who lives in another person’s property and pays the owner (or their agent) rent under a lease or tenancy agreement |
| tenants union | a community organisation of tenants and community agencies established to educate tenants about their rights and to improve the conditions of their housing |
| tribunal | a body set up to investigate and resolve disputes |
| trustee | a person who holds property on trust for another who must satisfy certain requirements of propriety in managing that property |
U
| unsecured loan | a loan against which no property is held as security |
| utility company | a company that supplies gas, electricity or water services |
| Utility Relief Grant | a financial grant available from the Victorian Government to assist people on low-incomes who are experiencing short-term financial hardship pay for gas, electricity or water supply and use at their property |
V
| Victorian Civil and Administrative Tribunal | a court-like tribunal where commissioners make determination on civil and administrative disputes, including disputes over debt and credit |
| voluntary bankruptcy | where a person applies to be made bankrupt because they are unable to pay their debts and wish to make a fresh financial start |
W
| waiver | an agreement that money or a debt owed will no longer be pursued by the creditor, and essentially written off |
| warrant | an authorisation issued by a Magistrate that the lawful holder may take certain actions including: make a search, seize property, execute a court judgment, or make an arrest |