What kind of debts are there

Take two minutes to find the right support for your situation. Get help now. In this section we talk through the debts we hear about from our clients every day.

Business debts Advice and support if you're self-employed or run a small business Consumer credit The most common debts are covered by the Consumer Credit Act Contract debt Help and advice if you've entered into a fixed contract Court debts and fines Court fines for criminal offences are some of the most important debts to pay Debts to other people Advice if you've borrowed from family, friends or a loan shark Government debts How to deal with HMRC, CSA and council tax debts Housing debts Practical advice on dealing with rent or mortgage arrears and avoiding repossession Joint debts Taking out debts in joint name will usually affect both of you Payday loan debt These short-term loans are expensive and can quickly spiral out of control Student loan debt Repaying your student finance can be a financial burden Utility bill debt How to deal with gas, electricity and water arrears.

Unsecured debts, such as credit card debt, are not taken out against an asset or covered by a guarantor. But circumstances change, and a debt that was once manageable can suddenly become unmanageable. When borrowing money, look at the whole picture.

Debts that look manageable at first glance may actually be harder to pay back than you think. Creditfix have helped over , people in the UK with their debts. We suggest that if possible, pay your most important debts first. If all of your debt is unsecured, think about which debts will cost you the most if you miss repayments. This website uses cookies to ensure you get the best experience on our website Got it!

Types of Debt. Quick links. Types of debt. Secured debt. Unsecured debt. When considering whether to take on debt, you should evaluate your financial situation, weigh the tradeoffs, and determine what level of debt you can realistically maintain. In this article, we outline four common types of debt and key considerations for each. Mortgage debt, which makes up the largest percentage of all consumer debt, provides the most financial benefits to consumers. For example, home ownership can help build personal wealth and financial stability, while annual tax deductions are generally available for those with qualifying mortgage interest expenses.

With interest rates still hovering near all time lows, taking on mortgage debt today may be a more attractive option, particularly over the long-term, than paying with cash or taking a large withdrawal from an investment portfolio. Another type of debt with potential financial benefits is student loan debt, which is the fastest growing portion of all consumer debt.

Similar to mortgage debt, there are tax deductions for qualifying student loan interest and tuition expenses. However, unlike mortgage debt, student loans cannot typically be restructured or shed in bankruptcy. Beyond these tax incentives, higher education is positively correlated to future income potential and employment opportunities. What is bad debt? Bad debt includes purchases made on depreciating assets, or assets that typically do not generate income or increase in value once purchased.