When you borrow money from a bank, lender, financial institution or utility provider, this can be termed as a debt. Debts will remain until you pay them back.
There are a number of different types of debt, with different lengths of time required until you have to pay the money back.
On your dashboard, we at ClearScore classify your debts into two categories: long-term and short-term.
Short-term debt falls due in its entirety within 1 year. This means that the time between taking out the loan and it being fully paid off is 1 year or less. Examples of short-term debt include: council tax, current account, utility bills, mobile phone contracts etc.
Long-term debt falls due in its entirety over a period of time greater than 1 year. A loan is taken out and paid back for a number of years. Examples of long-term debt include: mortgages, secured loan, student loan and consolidated debt.