What The F***nce!

The world of money and finance can be pretty perplexing at times. Especially when it comes for financial language! There are times when it seems like the powers that be all got together and agreed to make financial terminology as bamboozling as possible – so that they could feel really clever or perhaps even so the everyday consumer wouldn’t understand it enough to question it. Who knows? At Monese, we hate jargon (of any kind), we prefer to talk about money in straightforward human language. You know, they type you use when you’re at home or talking to family and friends.

We’ve decided to kick off a What The Finance blog series – that will demystify all of those bizarre financial terms and help you build a better understanding of financial products and services, and whether or not they are right for you.

This week we’re focusing on short term loans:


APR, which means Annual Percentage Rate tells you how much a loan will actually cost over an average year period. It includes any upfront charges as well as fees and interest. It’s a legal requirement that APR is shown when loans are advertised so that consumers can easily compare them with one another.


These are County Court Judgements and are issued to individuals that fail to repay loans which they’ve taken. CCJs negatively affect your credit rating and are enforced by bailiffs, who will attempt to recoup losses on behalf of the lender by taking goods from the debtor’s property.

Interest Rate
Lenders want to make money when they provide you with a loan. If they give you £100 and only ask for £100 back, they wouldn’t be running a very profitable business… So they charge interest as a fee, on top of the loan amount you’ve asked for. Interest is usually applied as a percentage, so 10% interest on a £100 loan over a year would require you to pay back £110. Pay close attention to when interest though, since it can be charge monthly on top of any amount that you still owe.

Stay tuned for more jargon busting next week!


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