Which type of debt is most likely linked to credit cards?

The type of debt that is most likely linked to credit cards is unsecured debt. Unsecured debt refers to loans or credit that is not backed by any collateral, meaning that the lender does not have a claim on any specific asset in the event of default. With credit cards, the borrower is typically given a credit limit based on their creditworthiness and financial history, without needing to provide an asset as security.

If a borrower fails to repay their credit card debt, the credit card issuer does not have the right to seize property or collateral, which is a defining characteristic of unsecured debt. This can result in higher interest rates compared to secured debt, where collateral lowers the lender's risk.

Secured debt is backed by an asset, such as a mortgage or auto loans, which can be claimed by the lender in case of default. Short-term debt usually refers to loans that are expected to be paid back within a short period, typically less than a year, while long-term debt involves repayment over multiple years. Credit card debt can fall into both short-term or long-term categories depending on the repayment behavior, but fundamentally, it belongs to the category of unsecured debt because of the absence of collateral.