If you’re struggling to manage your bills at the beginning of what could be a tough year for many, understanding and prioritising your debts may help avoid serious consequences in the New Year and throughout the rest of 2010.

Priority Costs in 2010

Prioritising your costs and debts means using your available money to settle the most important costs and debts first. Usually, the three most important priority costs are: 1. Mortgage and Rent If you fall behind on your mortgage, your mortgage lender could take legal action by repossessing your house and selling it on. Similarly if you fall behind on your rent, your landlord may try to evict you and take you to court to recover the money you owe. 2. Utility Bills Failing to pay utility bills such as your electricity or gas could result in providers disconnecting you. All of the above hold serious consequences that may affect basic survival and security, so it is important to address gas arrears and electricity arrears first. 3. Taxes and Court Fines If you fail to pay outstanding Council Tax or court fines the court could enforce bailiffs to recover goods from your home.

Unsecured Debt and Non-Priority Bills

They include:
  • Credit card and store card debts
  • Bank overdrafts and personal loans
  • Catalogue arrears
If you are worried or struggling with your unsecured debt or are behind with your priority costs due to spiralling monthly debt bills, then contact Payplan online for free debt advice or call 0800 316 1833.