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Glossary
The terms and conditions that form part of borrowing money can be difficult to understand, so we've put together a list of words which you may not be familiar with to help you on your way. Something not here? Contact us!
We understand that sometimes you need help with other problems.
Organising your budget, travel details, difficult legal jargon, consumer rights and finding the right deals are all things we can help with here.
Our Loan Types: Cash ~ Payday ~ Car ~ Debt Consolidation ~ Business
Automatic Payment: A way of repaying your loan without having to bring in cash every time a payment is due. The bank can pay us directly into our bank account.
Bad Debt: A debt which the debtor has not repaid to the creditor, either in the way which was mutually agreed to, or at all.
Borrow: Where a debtor asks for and is lent a sum of money by a Creditor and in return, the Debtor agrees to repay the loan [including interest and any charges] back over a certain time period by one or more repayments.
Business Loan: A loan to a business, taking into account the business's income and using the business' chattels as security in the first instance. Business Loans may not be governed by the CCCF Act.
Cash Loan: Where a debtor is given Cash when a loan is made, or a cheque made out to “Cash”.
The Credit Contracts and Consumer Finance Act 2003 [CCCF Act]. This is the law which applies to most loans in New Zealand.
Contract: A written agreement between a Creditor and one or more debtors which states all of the conditions of a loan.
Credit: Credit is when you borrow an amount of money and don't have to pay it back straight away. Usually you pay the amount back in regular instalments (repayments).
Credit Limit: The maximum amount of credit that a Creditor will allow a debtor to borrow.
Credit Rating: A way of looking at your credit history and deciding how good any past loans or hire purchases were. It also looks at any bad debts that you may have had.
Credit History: A list of Creditor's that have inquired about your Credit Rating, including people or business's which you have had bad debts with in the last five years.
Creditor: Any business that a person or another business borrows money from or otherwise owes money to. Aztec Finance is a creditor.
De facto: In general terms: A relationship where two partners are living together as a couple; who are not married to each other.
Debt: What a debtor owes to a creditor after they borrow money.
Debt Consolidation: A loan which pays off two or more other debts, bringing numerous debts together with more manageable repayments.
Debtor: A person or business who is lent money by another business.
Default: Where a debtor does not pay back the loan in the same way that the contract states.
Default Fees and Charges: Fees and Charges which the debtor will incur if the loan goes into default.
Full Prepayment [Settlement]: The amount that a debtor must pay on a certain day in order to pay off a loan in full.
Guarantor: A person, people or business who agree to use their security for a loan which is given to another person, people or business.
Line Of Credit: Where a business [could also apply to an individual] will be allowed to borrow money up to a certain amount during the course of the loan. It may be all at once, or little by little. The loan could also be partially repaid or fully repaid and borrowed again during the contract's time frames.
Loan: A loan is a type of debt. The creditor will lend the debtor an amount of money, and the debtor will repay the money [usually plus interest and charges] either in regular instalments or in one payment.
Partial Prepayment: Where a debtor pays more than a contract calls for, without fully repaying a loan. Some Creditors don't allow this as it saves you money in the long run, Aztec Finance will let you!
Pay Clerk Deduction: When the loan repayments are made by your Pay Clerk before your wages are given to you.
Payday Loan: A cash loan which a debtor repays in full by their next payday. This can sometimes be “stretched” over two or more paydays.
Repayments: What a debtor must pay in order to pay off the loan.
Repossession: If the loan is not repaid in full, or not repaid as the contract states, the security may be taken by the creditor and sold [more conditions apply] to repay some or all of the loan balance.
Rollover: An option in which the debtor can pay off the loan and re-borrow the original amount again immediately, using the same terms as were originally used.
Security: Any item [or items] which is used to secure a loan. If the loan is not repaid as stated in the contract [conditions apply] then the security used may be recovered by the creditor at your cost and sold to recover some or all of the debt.