It’s important to know the implications of each type of debt, especially in an ever-changing financial landscape like we’re seeing here in the UK. Luckily, when it comes to understanding debt, including the various types of consumer debt and business debt, we’re here to help. Click the links below for the full lowdown on everything from credit card debts and car finance loans to rent arrears and energy bill debts.
Business Debt
There are often significant costs associated with running a business, and as a result, debts can mount. This can include loan debt, invoice debt, tax debt and more.
Gambling Debt
Although gambling can be a fun leisure activity for some people, for others it leads to serious addiction. In turn, this can result in gambling debts that cause major financial problems.
Credit Card Debt
Using credit cards can result in a buildup of credit card debt, and if you fail to make payments on time, you can find yourself in credit card debt arrears. Different rules apply to different types of credit, so it’s important to know the facts when you are facing specific debts.
Council Tax Debt
If you have missed council tax payments, you will be in debt to your local council. Council tax debt differs from other types of debt in key respects, so it’s essential that you know what to expect if you find yourself in this situation.
Payday Loan
As their name suggests, these short-term financial agreements are designed to be taken out and repaid by payday. However, if you fail to repay them in this way, you could quickly find the interest and charges mount up.
Buy Now Pay Later
BNPL debts are outstanding balances associated with BNPL financial agreements. Although when paid on time, BNPL agreements don’t typically come with fees or interest, if you fail to stick to the terms, you could face late fees and extra costs.
Student Loans Debt
Student loan debt is the amount you have to repay when you have finished your studies and started working. It works differently to other types of debt. For example, it has repayment requirements and safeguards that make it more manageable than standard loans.
Utility Bills Debt
Utility bills include all the essential services you use in your home, such as electricity, gas, water, council tax and TV license. Utility bill debts occur when you fail to keep up with your payments of these bills.
Debit Card Debt
Debit card debt refers to money you owe to the provider of your debit card. Although this type of debt is considered to be less common than many other forms of debt because of the ways in which people tend to use their debit cards, it does happen.
Secured Loan
A secured loan allows you to borrow money against an asset of value, which could be anything from a property to a car.
Rent Arrears
Rent arrears occur when you fall behind on your rent payments as a tenant. This could be to either a housing association or a private landlord. This type of debt is considered to be a priority debt.
Car Finance Loan
A type of non-priority debt, car finance is related to the loan or lease purchase of a vehicle.
Energy Bill Debts
Energy bill debts are any debts associated with the energy usage in your home, such as all lights and appliances like TV’s, computers, and refrigerators.
Water Bills
Water bill debts are any outstanding payments associated with the water usage in your home. Water bills are linked with the supply of water in your home.
Government Debts
HMRC debt describes money you owe to the government or your local council. For example, this could include outstanding tax payments or government fines.