We’ll admit that sometimes it’s hard to get your head around the best methods and options for your financial position when faced with new lingo. We’ve put together a list of our top terms for you to understand before embarking on any financial decision making.
Bad debts: Money that is owed that is unlikely to be paid in the foreseeable future.
Accrued interests: Interest calculated and added to the interest amount payable, not yet paid.
Assets: A list of what an individual currently owns such as real estate, savings, cars, home contents and super.
Home Equity: The value of a home not subject to any lenders interest. This is calculated at the price of the home minus the remaining mortgage.
Lenders Mortgage Insurance: A form of insurance taken out by the lender to safeguard the bank in the event of a loan going into default.
Offset account: An account linked to a home loan. The balance held in this account offsets the balance in the home loan helping to reduce the interest paid.