Unsecured debts are all the debts that you own that are not a mortgage, secured loan or car HP. They include the following:
| Credit Cards |
Bank Overdrafts |
Bank Loans |
| Store Cards |
Catalogues |
VAT |
| Pay Day Loans |
Door Stop Loans |
Income Tax |
If you are a sole trader, tax owed such as VAT and income tax is also treated as an unsecured debt
These debts are unsecured because they are not linked to any of your assets. If they are not paid, the associated creditor does not have the automatic right to take any of your goods away from you.
To find out more click on the following links or continue reading below to calculate how much unsecured debt you have.
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Calculate how much unsecured debt you have go
It is very important that you have a good understanding of the amount of your unsecured debts and how much you should pay towards them each month.
1: List your unsecured creditors
You should write a list of all the unsecured creditors you have, also list the normal monthly repayment that you should pay them each month.
2: List the outstanding balance for each creditor
If you have credit cards, store cards or catalogues, get out all of your most recent card statements and list the balances and the minimum monthly payment that you are required to make.
When listing bank loans, try to find out how much is outstanding on the loan. If you have access to online banking, you can often see how much your personal loan balances are. If not, then you should ring the bank that provided the loan and ask for up to date balance.
Calculating the balance of a personal loan
If you are up to date on your loan payments, a simple way of calculating the outstanding balance yourself is to deduct the number of months you have paid from the total period the loan is payable over. This will give you the number of months outstanding which you can multiply by the monthly payment to give the total outstanding balance.
3: Calculate total unsecured debt
You will then be able to add up the total outstanding to your creditors and the total amount you should repay them each month.
The next step
Your next step is to decide how best to use your disposable income by deciding on your money goals.