The 6 Most Common Types Of Debt And How To Pay For It

Most everyone has to pay debt of some kind. Those just two or three generations ago lived on cash but now you almost must have debt to buy anything because of inflation over the years. 

Some debt is common among most people and many are now concerned with how to pay debt with the economy doing roller coaster rallies and falls these days. Below are the six most common types of debt and how to pay for it. 

Common Types Of Debt

1. Mortgage Debt

A home is by far the biggest purchase most people will ever make. Mortgage loans typically range from 10 to 30 years and the monthly payment depends on how much you put down. You pay debt like this down, along with the interest, by making at least one extra payment a year. It may surprise you how much you can save by doing this one simple thing. 

2. Vehicle Loans

Buying a car, truck, SUV, or some other vehicle can be pricey depending on the make and model. You can better pay this debt by either seeking refinancing of the loan from your bank, which will lower the interest, or using the vehicle in a side gig like delivery services. Take the money from the gig and put it solely toward your vehicle note until it's paid off. 

3. Student Loans

It's hard to graduate from college without a student loan and most take 10 years or more to pay off. You can cut this cost by looking for education grants to pay for school or taking some courses online, which is cheaper than on-campus learning. Some companies also have programs where they pay for your education if you come to work for them after you graduate, so look into those.

4. Credit Cards

One of the biggest sources of debt among Americans is credit cards. They are convenient but they also cost in interest. You can pay debt on these by concentrating on the card with the smallest amount first. Move to the next smallest amount once that one is paid off. 

5. Personal Loans

Personal loans make up one of the more common types of loans on the market today. Personal loans can be used for almost anything and are typically issued by banks and other financial institutions, although some private lenders also deal with them. You can pay off a personal loan by allocating a portion of your paycheck toward loan payments.

6. Short-Term Loans

Short-term loans cover an array of products from a variety of lenders from banks to private lenders. They include payday loans, advances, signature loans, and title loans. Seeking a title loan online is the newest convenient trend. Loans like these are typically paid off in a paycheck or two as they are meant to pay for unexpected expenses.

The advantages of this type of debt are that it amounts to quick cash and is paid off quickly so it doesn't hang over your life as other debt does. Short-term debt is also pretty easy to get even if you have bad credit or no credit.

Paying For Larger Emergencies

Some unexpected expenses are now thousands of dollars because of inflation. A car or home repair that was once simple can cost $4,000 to $5,000. That is a lot of money to come up with at once. 

This is where seeking a title loan online from Southwest Title Loans can be an option. We offer both title and registration loans. The title loans can be up to $15,000 so that could be the right choice for a larger unexpected expense. 

It only takes three things to apply for this type of loan including a clean title to the vehicle, the vehicle available, and a picture ID like a license or a state ID. The process starts with filling out an online form to inquire about a loan. 

Once you submit a form, a company representative from a location closest to you will contact you to explain the process. You have the choice after that to come into the closest title loan store to make a formal application or meet the loan representative at a place most convenient to you. 

A loan representative will check your documents when they meet with you and will inspect your vehicle. Once you are qualified, you can get money either the day you sign the papers or the next day. You can keep your car during repayment. 

Submit An Online Form

It's easy to find out about a title loan online by submitting a loan inquiry form for Southwest Title Loans. A title loan will help you pay for an unexpected expense while you continue to pay the debt on your other bills so you can stay on track. 

Find out if this option is a good one for you by submitting the form today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.