Priority debts are those that will impact your life in a big way. They can include obligations that could lead to having your home repossessed, losing your gas or electricity supply, being made bankrupt, or being taken to court. These debts are crucial, and if you start having difficulty with them, you should seek help immediately. You can contact the companies you owe money to and arrange a payment schedule you can manage.
Priority debts can include a wide range of debt types, such as:
Housing debts
Your mortgage or rent should always be the highest priority. Avoiding repossession or eviction is crucial for you and your family.
Housing debts
Your mortgage or rent should always be the highest priority. Avoiding repossession or eviction is crucial for you and your family.
Utility debts
Once your house is secure, it’s essential to ensure your family can stay warm and safe. Clearing gas and electricity arrears will make life easier.
Secured loans
A secured loan is usually secured against a specific asset, such as a car is when you have an HP agreement. Avoiding repossession can be vital if it affects your ability to keep earning money.
Council tax
Most local councils will help you by creating a payment schedule you can manage.
Child maintenance arrears
This debt can see you end up in court if you don’t arrange to deal with it.
HMRC
If you owe income tax, national insurance or VAT, speak to HMRC to arrange a repayment schedule you can cope with.