If you are having money problems it is important to prioritise the debts you are paying back. You should do this by making sure you pay the ones that could put your home or property at risk. In extreme cases people can be sent to prison for failing to pay Council Tax or court fines.
These are examples of priority debts: Rent or Mortgage, Council Tax, Gas and Electricity, Court Fines or Hire Purchase - where the supplier still owns the goods until you make the last payment.
With these priority debts, you need to make an arrangement that covers your ongoing charges (like your current rent, current gas use and other bills) and offer a little bit towards the arrears so that the debt is coming down.
If you have money left over after your essentials are paid, this should be offered to pay off any non-priority debts. These debts include things like credit cards, loans that aren't taken out against your house, catalogues, doorstep lenders and so on.
The law stops any drastic action you might face for these non-priority debts so long as you pay what you can afford. Even if they take you to court, the court should make an order for you to pay an affordable amount each month.
You can find more information about dealing with debts on AdviceKit Manchester.
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Need more help? Live in Manchester? Send us an email
Information Provider:
Manchester Advice
Date Written:
September 2005
Date Reviewed:
24 March 2006
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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