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Veteran debt refers to financial obligations owed by former members of the U.S. Armed Forces. It can include general consumer debts (like credit cards and personal loans), but also debts specifically linked to VA benefits, such as overpayments for disability compensation, pension, VA home loans, or education benefits (e.g. GI Bill).

Utility bill debt arises when you fall behind on payments for essential services such as electricity, gas, water, sewage, and sometimes internet or trash collection. This type of debt is considered unsecured, meaning it’s not backed by collateral.

Tax debt occurs when an individual or business owes unpaid federal, state, or local taxes. The most common type is federal income tax debt owed to the Internal Revenue Service (IRS), but taxpayers may also owe state income taxes, payroll taxes, or property taxes.

Student loan debt refers to money borrowed to pay for higher education expenses, including tuition, housing, books, and fees. It is one of the largest types of consumer debt in the U.S., affecting over 42.7 million borrowers. The average loan amounts in 2025 are approximately $38,000 for federal student loans and up to $41,600 when private loans are included. This provides a clearer sense of the typical individual debt burden.

Personal loan debt is an unsecured type of debt resulting from borrowing money through a bank, credit union, or online lender. These loans are typically used for debt consolidation, large purchases, emergency expenses, or significant life events.

Payday loan debt results from short-term, high-interest loans typically used to cover urgent expenses until the next paycheck. These loans are usually due within two weeks to a month and often carry annual percentage rates (APRs) exceeding 300%.

Mortgage debt is a secured loan used to purchase or refinance real estate. The property itself serves as collateral, meaning that if you fail to make payments, the lender has the legal right to foreclose and sell the property to recover the unpaid amount.

Medical debt is unsecured debt that results from unpaid healthcare expenses. It can come from hospital bills, emergency care, outpatient services, or prescription medications. Because it is not backed by collateral, it relies solely on your promise to pay.