An IVA may not be suitable in all circumstances.

Fees apply to the service, click here for more details. Your credit rating may be affected. Read more about IVAs here.

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. We've helped over 20,000 people* start their journey towards financial freedom.

Although we’ve listed some of the most common types of debt 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.

* As of 10/02/22 20,601 of our customers were in an active IVA.

Debt Types

Bank Loan Debt

Bank loans are some of the most common loans in the UK. However, if a payment is missed or interest rates increase then this can turn into unmanageable bank loan debt.

Payday Loan Debt

Often used for unexpected costs or to stretch out your paycheck, the payments for payday loans can often get out of hand. We're here to help you regain control.

Overdraft Debt

An overdraft is a common form of short-term lending, but the charges and additional fees can cause financial difficulties. We can help you with overdraft debt.

Catalogue Debt

Catalogues are a way to secure products when times are tough. However, potentially high interest rates mean that a seemingly good deal can become expensive.

Credit Card Debt

Many people use credit cards, but it's very easy for debt to mount up and affect your disposable income. We can help you restore control of credit card debt.

Store Card Debt

Store cards can help you afford products in difficult financial times but they often have high interest rates - you could be paying a lot more in the long-term.

Gambling Debt

Sometimes gambling as a pastime can turn into a problem and lead to gambling debt. We've provided some information on how to get help with your debts.

Mobile Phone Debt

Mobile phones can be an expensive essential. If you're struggling to pay your bills from previous phone providers, we can help you with your mobile phone debt.

Council Tax Arrears

If you can’t pay your Council Tax, a council could take legal action against you. We can help you get your council tax debts under control with an IVA.


Owing money to HMRC can result in legal action or bailiff visits. If you can't resolve debts with HMRC, we can help you determine if these could be written off.

Rent Arrears

When you're struggling to pay your expenses, getting into rent arrears is common. We can help you get in control and potentially write off some of your arrears.

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.