Credit cards rank among the most popular ways of purchasing products and services in shops and online, with the balance repaid each month on a set date.

Personal bank loans provide a cash lump sum that is repaid over a fixed period at a set amount each month. They aren’t secured against an asset, such as your home, which is why they’re also known as an unsecured loan.

Store cards function in a similar way to credit cards, and can be opened either online or in store, with a monthly statement that details the minimum repayment.

Debt advice when you’re burdened with a payday loan or loans that have been rolled over Payday Loan Debt overview Payday loans are a form of short-term, high interest lending. This form of finance t

When you apply for an account with a catalogue company, you’re provided with a credit amount (much like an overdraft). This credit facility is a ‘revolving’ one, which becomes available again once repaid.

Debt collecting agencies are the businesses that your creditors may pass your debt to in a bid to get your arrears repaid. There are two ways this works:

Bailiffs (also known as ‘enforcement agents’) are the people who visit your home if you do not pay certain debts, such as your Council Tax, parking fines, court fines and County Court/Family Court judgements.

Council tax is a household tax paid by every property owner or renter in the UK. The amount payable depends on the estimated value of the property, as well as how many people live within it.

If you’ve had court fines imposed on you, you must prioritise this above all other debts. Courts have significant powers to collect fines, including the use of bailiffs and, in the most serious of cases,

When using car finance to purchase a vehicle, either through a Hire Purchase agreement or Personal Contract Purchase (PCP), your car remains owned by the finance company until fully repaid.

Staying in your home – whether rented or mortgaged – is a priority, which is why you should pay these debts above all others and seek debt help immediately.

Consumer credit includes debt that is owed in the form of: Credit card debt; Doorstep loan debt; Overdraft debt; Personal loan debt; Store card debt; Store finance debt; Weekly payment store debt; Short term loan debt;

Student loan debt in the UK today tops £100bn – with the average amount owed standing at £32,220. Given this level of debt, more graduates are seeking debt help than ever before.

If you can’t pay any or all your utility bills you must speak with your providers. Unlike other forms of debt, utility companies are motivated to work with you as they only stop supply in extreme circumstances.

Income Tax (PAYE), National Insurance or VAT arrears are all classified as priority debts – meaning they take precedence over non-priority debts (which include credit card debts and payday loans).

Borrowing money from those you know – such as your family or friends – can at first seem a savvy financial move, as you avoid the need to pay interest, such as you would to a bank.

HMRC debts include money owed following a self-assessment or VAT return. HMRC debts include income tax, PAYE and national insurance. HMRC debts are priority debts. If you don’t take steps to speak with HMRC or pay your bill in full, they will take ‘enforcement action’.

When you use credit with another person – such as with a loan or bank account – this is considered as a joint debt for which you are both responsible for the entire amount

An overdraft is a credit facility of your bank account. This facility allows you to use your bank account in the normal way, but spend more than the cash you have in it, up to a set limit.

Contract debts involve a set period of time and set or variable payments. In the first instance, where you stop repaying the contract, you’ll lose access to the services.

If you suspect that you are dealing with a loan shark, you should seek debt help from one of the government’s dedicated departments, as according to where you live.

Doorstep loans (also known as home-collected loans) are typically supplied by a local agent who provides you with cash money or, less frequently, vouchers. Over the following weeks or months they’ll then

On the face of it, borrowing from friends and family can appear to be a promising alternative to using mainstream credit companies, with benefits that include little to no interest being charged and the reassurance

A Guarantor Loan is where you receive credit on the proviso that someone else, typically a friend or family member, legally promises to repay the loan if you can’t.

Also known as a Conditional Sale, Hire Purchase is a form of finance that is used to purchase vehicles and large domestic items, such as white goods, furniture or technology.

Insurance policies are used to protect you from certain situations, such as loss or damage. Some insurance is required to abide by the law, such as car insurance, while others are required to meet your obligations

During the course of the loan you’re still able to use your vehicle as you normally would, with the average logbook loan lasting for a period between one and three years with a loan amount of between £400 to £5,000.

An administrative order is a legal debt settlement agreement that sets out a repayment plan. This form of debt solution will consider the income you have remaining after your essential bills and living expenses have been accounted for.

If you’ve fallen behind with your repayments, you may be able to come to a debt settlement repayment agreement with your creditors. You can make a debt settlement proposal by phone, email or letter, but however you contact them, you’ll need to put forward an offer as to how much you can repay.

The Breathing Space Scheme is due to commence in May 2021, and will provide protection from further interest, charges and enforcement action on debt problems for a period of 42 days, while debtors seek advice.

Equity release is an alternative to remortgaging for those aged 55 and over. Choosing an equity release from among your possible debt solutions can act as debt consolidation.

A remortgage is where you take out a new mortgage on a property that you own. The new mortgage either replaces an existing mortgage or (where the property is 100% owned) allows you to borrow funds against the property.

If you have debt problems that are significant, or where you’re facing spiralling charges and interest, it may make sense to sell your assets to repay your debts – whether in part or in full.

Sequestration is the official term for bankruptcy in Scotland. Sequestration Order is a type of insolvency suitable if you’re dealing with debts that you would not be able to repay within a reasonable amount of time.

Debt settlement involves a lump sum of cash that is used to repay your creditors. The process involves negotiating ‘full and final settlements’ from those you’ve borrowed from.

If you can no longer maintain the payments on your mortgage, you should contact your mortgage lender in the first instance to inform them of the situation, asking for help in selling your property. Prior to this, you may want to talk with debt advisors from a longstanding debt agency, as they may be able to provide housing advice.

If you reach a point where you can no longer repay your debts, whether owing to the total you now owe or if your situation changes, you could be able to organise a temporary repayment plan.