In partnership with the Insolvency Network
Types of debt
Debt is not a bad thing, for many people it is a way of life. Debt becomes a problem when it gets out of control and you cannot afford to make the payments you owe on time, or in some cases at all.
Debt can basically be divided into two catagories:
Unsecured debt is credit given to you without requiring the backing of an asset, whereas secured debt is always backed by an asset which, if you continually fail to make payments, could be repossessed by the lender.
For more information on some of the more common causes of debt click check the links below, remember these are amongst the most common reasons people have financial problems but we can advise you and show you how to write off your debt no matter how you found yourself in your current situation, you are not alone and help is available:
Rent arrears
Credit card debt and Overdrafts
Household bills
If you are not sure where you are with your debt and unsure if it is a problem then take the debt test offered by the FSA, it will help you review your borrowing and what you owe