What Kind of Personal Debt Is there?
There are so many different ways to get personal debt. Basically, you are taking out a loan of some sorts. The most common loans you can probably think of are student loans, private loans, mortgage loans, small business loans, etc. These can be hard to get if you don’t have credit, have bad credit, or have low income and assets. There are also consumer type loans such as credit cards and other financing. Credit card debts are used by many people but are easy to fall into trouble with because they are so easy to charge to and the interest rates are so high. Auto loans can also be considered consumer debt or other financing such as for electronics, furniture, or other large purchases. As I mentioned, all of this kind of debt isn’t necessarily bad in and of itself. It is how you deal with it that can turn sour. If you don’t pay back your loans, you will get bad credit and will get into trouble with a collection agency and potentially the law. If you only pay the minimums, especially on cr