Types of Debt

There are many types of debts that people may have. To find out more about different types of debt and what they all mean, click any of the options below.

Credit Card debt

The money owed to credit card issuers for purchases or cash advances made using credit cards, which can build up and become a problem over time.

Council Tax debt

Council tax debt is the unpaid amount owed to local authorities for essential services. It’s a priority debt which can lead to serious legal consequences.

Business debt

Business debt refers to financial obligations incurred by a company. These can become unmanageable and lead to liquidation or bankruptcy if not addressed.

Festive debt

Festive debt builds up when you’re pressured to spend over the holiday season. If not controlled, festive debt can lead to longer-term financial problems.

Gambling debt

Gambling debts occur when a person borrows money to fund their gambling habit. Problem gambling can kickstart a cycle of borrowing that leads to serious debt.

Income Tax debt

Income tax debt is the unpaid amount owed to tax authorities, such as HMRC, for taxes on earnings, and may result in enforcement action if not resolved.

Logbook loans

Logbook loan debt is money owed on loans secured against a vehicle. Failure to repay the loan can lead to repossession of the vehicle by the logbook lender.

Payday loans

Payday loans are a form of short-term borrowing with extremely high-interest rates. Failing to repay on time can lead to a cycle of debt and financial stress.

Secured loans

Secured loans are loans backed by collateral like a home or car. Non-payment of secured loan can lead to repossession of the asset securing the loan.

Student loans

Student loans are funds borrowed to finance education, with repayment typically starting after graduation. Expensive student loans can become a long-term financial burden.