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Debt

Getting yourself in debt is a common problem in today’s society. It’s important not to panic, but don’t ignore it either! So, how do you sort out your debt?
  1. Contact your creditor(s) to find out how much you owe
  2. Sort out your most urgent debts
There are two types of debts, priority debts and non-priority debts: Priority Debts
  • Mortgage or rent arrears. You could lose your home if you don’t pay these
  • Gas & Electricity arrears. Your supply could be disconnected if you don’t pay these
  • Council tax arrears. If this debt is not paid, the court can use bailiffs to take your belongings. If you have unpaid arrears after this, you could be sent to prison
  • Income tax or VAT arrears. This could result in going to prison for non-payment of income tax of VAT
  • TV License. Using a TV with a license is a criminal offence and you could be fined for not paying this
Non-priority Debts
  • Benefits overpayments
  • Overdrafts, loans, hire purchase, credit cards/catalogues
  • Student loans
  • Money borrowed from friends/family
  • Parking penalties issued by local authorities
You cannot be sent to prison for not paying these sort of debts. However, if you do not offer to pay without explaining why, the creditor may take you to court. At this stage, if you fail to make payment after the court has ordered it, they may send bailiffs to take your property. This will then be sold to pay off your debts. Once you have prioritised your debts, work out your budget so you known what you can pay off and what you will have left. For more information or help on your debt situation, call us on 0800 1223 104 and our friendly team will be more than happy to help.

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