When you’re facing debt, all money owed might look the same. But that’s not the case. Some debts will come with faster, more troublesome consequences than others. This article will help you to prioritise your debts, and identify when to seek debt advice from experts.
So, what exactly do we mean by prioritise? Well, we don’t just mean those that are the highest in cost. What we mean is that some debts should take priority over others due to the severity of their consequences and should therefore be paid back as priority. Here are some examples of priority debts: Council Tax; TV Licence; Court Fines; Child Maintenance; National Insurance, Income Tax and VAT; Mortgage Payments; Rent.
You should also prioritise any loans that you have taken out against your home or property.
When we talk about the consequences for such debts being more severe, it’s because they could include overwhelming …