Most people incur debt throughout their lifetime. Lending and borrowing are part and parcel of the modern economy – it’s only when you can’t pay back your debts that they become a problem.
There are many different types of debt, and listed here are some of the most common.
Loans, Mortgages and Credit Cards
Loans, mortgages and credit cards are widely regarded as necessities. However, issues arise when repayments become problematic.
Home Debts (Council Tax and Utilities)
Council tax and utility bills are compulsory debts for every homeowner – which is why setting up a strict payment plan is essential.
Income Tax and VAT
Income tax and VAT are government debts – failing to pay can have serious consequences with HM Revenue & Customs.
Cash flow is key when running a company. When expenses start to outweigh revenue, it’s vital to take fast action.
Payday loans are unsecured agreements with high interest rates. Paying back the full amount can be difficult, and many borrowers end up seeking help as a result.
When your creditors aren’t being paid what they’re owed, they may send a debt collector to your property in an attempt to claim the money they’re entitled to.
Family and Joint Debt
Many people find joint and family debt agreements beneficial – in a lot of cases, they increase the likelihood of you being able to afford something important in the future.
It’s difficult to borrow money without a good credit score. Your score will be checked every time you apply for a loan; the more you undergo credit checks, the less likely you are to secure a satisfactory rating.
Bennett Jones can support you with any type of debt you might be struggling with, providing you with information about the different ways in which to repay money.
Call us on 0800 7710 073 to find out more.