Who Is Involved In My Debt?

• Debtor - Any consumer that uses credit cards, holds a personal loan, is paying on a home mortgage, or borrows money from another company or individual with an agreement to repay the credit or loans over some period of time, usually with interest.



• Creditor - A credit company, bank, mortgage lender, retailer or other business that extends credit or issues loans to consumers.



• Debt Collector - Any organization or individual, including attorneys, that regularly collects debts owed to others.



• Third-party Financial Assistance - Any debt consolidation, credit counseling, credit repair, or other organization that offers financial assistance to consumers. Some agencies are not-for-profit organizations, funded by communities, governments, or even creditors.

What Are The Two Types of Debt?

• Secured Debts - Secured debt is a loan or line of credit that is tied to an asset, such as a car for a car loan, or a house for a mortgage. The lender may repossess the asset if the consumer defaults on some term of the loan agreement.



• Unsecured Debts - Unsecured debts are not tied to any asset. This type of debt includes credit card debt, signature loans, medical bills, debts for other types of service, and other such debts.

What Are My Debt Options and Resources?

If you get into financial trouble, there are a number of options and resources you can look to for help. Options may range from simple solutions, such as budgeting, to last resort options like bankruptcy. Based on the type of debt, the amount you owe, your self-discipline, and your future financial outlook, you can determine what is the best option for you.