Other common examples of debt include:

• Mortgages on property (such as a personal residence, investment property or commercial property)
• Credit Cards
• Store Cards (e.g. David Jones or Myer cards)
• Personal loans (maybe for a holiday)
• Lease or Hire Purchase arrangements (e.g. for a motor vehicle)
• Margin Lending facilities (generally used for investment in shares or managed funds).

You will usually find that unsecured loans such as credit card debts and personal loans will have a higher interest rate than, say, a residential mortgage.

A mortgage on your primary residence is generally at a lower rate as the lender has right of recourse to the property as security for the loan, it is usually for a large amount, and the repayment period is long term.

Let’s explore some of the more common debt structures.