Types Of Debt

Whether paying a couple of types of debt – or several – we know how difficult it can be trying to keep on top of your finances. The good news is that you’re not alone. Every day, we help around 500 people regain financial control through one of our debt solutions.

These help to resolve multiple types of debt. Although we’ve listed some of the most common ones we deal with here, this list is not exhaustive. Our advisors have heard just about every story and every situation. If you have creditors not listed here, contact us anyway.

At the very least, it’s the first step towards taming your debts.


Bank Loan Debt

Bank Loan Debt

Banks are some of the most common lenders in the UK. Frequently helping with the developments in our lives, from mortgages to weddings, this type of debt can become unmanageable if a payment is missed or interest rates start negatively impacting your life.

Payday Loan Debt

Payday Loan Debt

Whether you took a payday loan to cover an unexpected cost or just make one paycheck last into another, payments to these creditors can get out of hand if you’re not careful. This form of lending is meant to cover curveballs in our life, but we’re here to help you regain financial control.

Overdraft Debt

Overdraft Debt

Every year, around 33 million people use either an arranged or unarranged overdraft facility. A common form of short-term lending, this is best used sparingly as the associated charges and additional fees can cause financial difficulties. Fortunately, we can help you finally pay off your overdraft.

Catalogue Debt

Catalogue Debt

Catalogues are often a great way to secure products when times are tough – or when birthdays or other events are just around the corner. However, potentially high interest rates mean what seemed to be a good deal can become expensive in the long run.

Credit Card Debt

Credit Card Debt

A credit card is arguably an essential item to have in our modern society. However, it’s very easy for debts to mount up and cause problems – especially with multiple purchases. Once this happens, it’s hard for the credit card to not affect your disposable income. Fortunately, we’re here to restore control.

Store Card Debt

Store Card Debt

An effective way to purchase products, store cards can a great way to get certain items when times are tough. However, these often come with high interest rates - meaning that you could be forking out a lot more money in the long run.


What debts should I clear first?

If you’re juggling payments between multiple creditors, and struggling to make ends meet, it can be difficult to decide which ones to prioritise. To determine this, you should break them up into the following:

  • Priority debts
  • Emergency debts
  • Non-priority debts

Priority debts are those expenses which, if left unpaid, carry serious consequences. For example, council tax is classed as a priority debt because one of the penalties of non-payment can be prison. Similarly, household bills are treated as a priority because failing to pay these can result in your heating or electricity being cut off.

In contrast, non-priority debts are those where either non-payment carries lesser consequences or serious ramifications in the future. Generally speaking, if you can’t pay what you owe, you should have a few months to resolve the issue. These cover such debts as credit cards and bank overdrafts.

Emergency debts are to be treated the same as priority debts. These could be previously non-priority matters where a period of non-payment has now resulted in imminent action. For example, a credit card provider might have passed your details to a collection agency.

The differences between unsecured and secured debts

During debt prioritisation, you will also need to determine which of your debts are unsecured and secured.

Secured debts are generally classed as a priority because the consequences of non-payment could put your assets at risk. An example of this would be car finance. If this expense is unpaid, the vehicle could be seized. Similarly, in the case of a mortgage, your home could be repossessed.

Unsecured debts typically cover such expenses as store cards and credit cards. As assets aren’t placed against the debt, the consequences of failing to pay these are generally less serious. For example, legal action and additional charges. In short, secured debts should typically be cleared before the unsecured ones.

Looking for help? You're in the right place

We deal with numerous types of debt every day – too many to list here. If you’re struggling to pay something not on this list, drop us a line anyway. Chances are, we’ve dealt with it before.

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