We use cookies to improve your experience of our website. You can find out more or opt-out from some cookies.
Cookie Policy
© 2026 Citizens Advice North East Derbyshire.
Citizens Advice North East Derbyshire is a charity and company registered in England and Wales (Charity Number 1118194 and Company Number 5933725).
Registered address: Citizens Advice North East Derbyshire, Clay Cross Active, Market Street, Clay Cross, Chesterfield, S45 9LX
Citizens Advice North East Derbyshire is regulated by the Financial Conduct Authority under authentication number FRN: 617680
This site was last updated on Monday, 2 March 2026
Close Menu
Debt jargon buster
A
Administration fee
A charge added by a lender or debt collector for managing your account or a missed payment.
Affordable payment
A payment amount you can genuinely keep up with after essential living costs.
Arrears
Money you should have paid but did not (often used for rent, mortgage, council tax and utilities).
B
Balance
How much you currently owe on an account.
Bailiff (enforcement agent)
Someone who may be instructed to collect certain types of debt after a court process. They have rules they must follow.
Bankruptcy
A formal legal process for dealing with debts you cannot pay. It can affect assets, bank accounts and credit history.
Benefit overpayment
Money the DWP or council says you were paid but should not have been, which they may try to recover.
C
CCJ (County Court Judgment)
A court order in England and Wales saying you must repay a debt. If unpaid, the creditor may ask the court for enforcement.
Charge (secured charge)
A legal claim placed on a property, meaning the debt may be repaid from the property’s value if sold.
Charging order
A court order that secures a debt against a property (usually after a CCJ).
Collection agency (debt collector)
A company chasing payment for a creditor. They are not bailiffs.
Credit agreement
The contract you signed for credit (loan, credit card, store card etc).
Credit file
A record of how you’ve managed credit. Lenders use it to decide whether to lend to you.
Creditor
The person or organisation you owe money to.
D
Debt management plan (DMP)
An informal arrangement to pay non-priority debts by affordable monthly payments, often via a provider.
Debt relief order (DRO)
A formal solution in England, Wales and Northern Ireland for people with low income, low assets and relatively low debts. Debts are usually written off after a set period if your situation does not improve.
Default
When a lender marks your account as broken terms of the agreement, usually after missed payments. It can stay on your credit file.
E
Enforcement
Legal steps a creditor may take to recover money after a court process.
Essential spending
Costs you need to live, like rent, food, energy, travel and basic household items.
F
Final demand
A letter saying payment is overdue and action may be taken if not paid.
Financial statement
A summary of income and spending showing what you can afford towards debts.
I
IVA (Individual Voluntary Arrangement)
A formal agreement in England, Wales and Northern Ireland to pay debts over a period. If you stick to it, remaining eligible debt may be written off at the end.
J
Joint debt
A debt in two names where each person is responsible for the full amount, not just half.
L
Liability order
A court order (often for council tax) allowing the council to take further action to recover the debt.
M
Minimum payment
The lowest amount a credit card lender lets you pay each month. Paying only this can take much longer and cost more overall.
N
Non-priority debts
Debts that usually have less immediate consequences if unpaid (like credit cards, catalogues and unsecured loans), compared with priority debts.
Notice of enforcement
A formal letter usually required before an enforcement agent (bailiff) can visit for certain debts.
Notice of seeking possession
(often referred to as a Section 8 notice in England and Wales) is a formal, written legal document served by a landlord to a tenant to initiate the eviction process.
P
Priority debts
Debts that can lead to serious outcomes if unpaid, like losing your home, having utilities cut off, court action or imprisonment in some cases (for example certain fines).
R
Rescheduling
Changing the repayment plan, for example extending the term to reduce monthly payments.
S
Secured debt
A debt linked to an asset, often a home (mortgage, secured loan). If not paid, the asset may be at risk.
Settlement
An agreement to pay a lump sum to clear a debt, sometimes for less than the full balance.
Statute barred
A debt that is too old for a creditor to take court action to enforce in some parts of the UK, depending on the type of debt and what has happened since. It does not always mean the debt disappears.
T
Token payment
A small temporary payment offered when you cannot afford the normal amount.
U
Unsecured debt
A debt not linked to an asset, like credit cards and overdrafts.
W
Write-off
When a creditor agrees not to collect some or all of the debt. It may still show on your credit file depending on how it’s recorded.