Glossary of terms

Glossary of terms

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HP

Hire purchase is an agreement to buy something on credit, without paying the full amount straight away. With HP you usually pay a deposit followed by monthly payments (including any interest and fees charged) over a set period. Also known as a credit sale or a credit contract.

Glossary: HP
Glossary: interest
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.