Debt Types

Summary: The debt-to-income ratio (DTI) measures the percentage of your income that goes toward debt payments, providing lenders with a

Summary: Personal loans can be either secured, requiring collateral like a car or home, or unsecured, based on creditworthiness and

Summary: Credit card debt is widespread in America, with the average balance steadily increasing. Factors contributing to this debt include

Summary: Small business loans can be either secured, requiring collateral, or unsecured, based on the borrower’s creditworthiness and financial health.

Summary: Payday loans are unsecured, short-term loans with extremely high interest rates. They are often used by people who cannot

Summary: A charge-off occurs when a creditor gives up on collecting a debt after a period of nonpayment, but it

Summary Student loans are typically unsecured debts, meaning they are not backed by collateral but rather by the borrower’s credit

Summary: Unsecured loans don’t require collateral, making them accessible based on creditworthiness, but they often come with higher interest rates

Summary: Secured loans require collateral, such as real estate or vehicles, providing lenders with security and borrowers with lower interest

Summary: Chapter 7 bankruptcy involves liquidation of nonexempt assets for debt repayment, while Chapter 13 offers a repayment plan for