For most of us, debt is part of our daily lives. We’re always being reminded about that credit card payment, or being asked to pay a bill before we forget. Despite this many of us have all kinds of debts and if we’re not careful, those debts can quickly pile up and leave us struggling to make ends meet. Not forgetting the impact that debt can have on our physical and mental wellbeing.

If you’re struggling with debt, it makes sense to get advice. You can get friendly advice from Creditfix here, just click the link. It also makes sense to make yourself familiar with the kind of debt you’re dealing with. That way you’ll understand your rights and how much power your creditors have.

Read on to discover the most common types of debt.

 

Credit cards

Having a credit card and paying off what you owe when instructed is actually good for your credit rating, it shows that you’re a responsible borrower. However, owning multiple credit cards that are regularly maxed out, or being unable to make the minimum payment each month can quickly spiral out of control and land you in a huge amount of debt and sleepless nights. Although it’s not a criminal offence to be unable to pay off your credit cards, it’s still incredibly stressful and it can even damage your credit rating.

 

Store cards/catalogue debts

We’ve all seen a beautiful top, pair of shoes or something we just simply have to have. Waiting until payday seems too long, which is why many stores and catalogues offer lending proposals so you can have what you want now and pay for it later. Many stores provide special offers for new or recurring customers, making store cards and catalogue subscriptions the perfect solution. Sadly, it also means impulsive purchases and more debt!

 

Payday loans

With many of us struggling to make ends meet, sometimes a little financial boost to help us make it to payday makes sense. Unfortunately, it’s incredibly easy to apply and obtain a payday loan, sadly the sky-high interest rates make paying it back in full incredibly difficult. It doesn’t take long for a payday loan to spiral out of control leaving you in debt and unable to gain back control of your finances.

 

Family debt

Borrowing money from friends or family seems like a completely risk-free venture. You won’t need to worry about interest or nasty debt collectors. However, borrowing money from a loved one comes with its own set of complications. Your loved one should only lend to you if you create a payment plan and make the arrangement formal.

 

Final thoughts

Don’t let your debt spiral out of control. Reach out to a debt advice company for information.