Helping you make sense of money, without the jargon
Let’s face it, money can feel confusing, especially when banks, lenders or official forms throw around words that sound more complicated than they need to be.
At Northern Community Bank, we believe everyone deserves to understand their finances clearly and confidently without needing a dictionary.
Here’s a quick guide to some common financial words, explained in plain English.
APR (Annual Percentage Rate)
The true cost of borrowing over a year. It includes the interest plus any extra fees or charges. Use APR to compare loans and credit cards – it gives you the full picture.
Arrears
This means you’ve missed one or more payments on something you owe, like a loan, rent, or utility bill. If you’re in arrears, it’s important to talk to the organisation as soon as possible, they may be able to help.
Budget
A plan for your money. It shows what’s coming in (like wages or benefits) and what’s going out (like bills and shopping). A good budget helps you stay on top of spending and avoid surprises.
Credit
This is money you borrow, with the promise to pay it back usually with interest. Credit can come in many forms, like loans, credit cards, or overdrafts.
Credit Score
A number that shows how reliable you’ve been with money in the past. Lenders use it to help decide if they’ll lend to you. Things like missed payments or too much debt can lower your score, but it can be rebuilt over time.
Debt
Money you owe. It’s not always a bad thing but it’s important to keep it manageable and repay it in a way that works for your budget.
Direct Debit
A way to automatically pay bills from your bank account on an agreed date. You give permission once, and the company can collect the right amount each time.
Interest
The cost of borrowing money, or the reward for saving it. When you borrow, interest is what you pay. When you save, it’s what you earn.
Overdraft
A type of short-term borrowing on your current account, allowing you to spend more than you have (up to a limit). Interest rates are usually high, so it’s best kept for emergencies.
Savings Account
A safe place to keep money you’re putting aside. We offer savings accounts with no hidden fees, easy access, and a share of the profits if we do well.
Share of the profits
At Northern Community Bank, a share of the profits is what we pay to our savers when we’ve had a good year. It’s our way of saying thank you.
Standing Order
A regular payment you set up yourself – like sending £20 to your savings account every payday. Unlike Direct Debits, you’re in full control.
Term
The length of time a loan or savings account runs for. For example, a 12-month loan has a term of one year.
Unsecured Loan
A loan that doesn’t require any assets (like your home or car) as security. This is the type of fair, flexible loan we offer at Northern Community Bank.
Still Unsure About a Money Term?
We get it. Financial words can be confusing, even on a good day. But you never have to figure it out on your own.
You can always talk money with us.
We’ll explain things in a way that makes sense – no jargon, no judgement.
