So you finally have some extra money on hand. The bills have been stacking up for weeks. Now that you can finally afford to pay, it seems like such a headache to decide which one should be paid first. Keep in mind that there are some debts that are more important than others. By important, that means that they can incur serious consequences if they are not taken cared of right away. Creditors can use a number of ways to recover their investments. They can send Bailiffs to remove personal possessions with value from your home or office. They can also repossess your home if you have finance secured on it. Utility companies, such as water and electricity or gas, can go ahead and cut off your supply and worse, some debts, like Council Tax or government taxes, if unpaid, can land you in prison.
So here’s a simple rundown of those things that need your up most attention:
- Mortgage. Having your land or home mortgaged means that it serves as a security for the money you borrowed. Mortgaging for most of us is the only option if we want a home of our own. The downside is, if the mortgage is left unpaid, the company you mortgaged your property to could end up repossessing your home. This is also the case if you have secured a loan against your home.
- Second Mortgage. It if you have more than one property, it is likely you may have used your own home as security. This can be risky if you run into financial difficulty and you cannot keep up repayments as you not only have the risk of losing you second home but also the roof over your head aswell! Be very sure you can afford the repayment when taking out two mortgages and have a contingency plan in place incase the worst happens.
- Unpaid Fines (Arrears, Court fines, Council/Community Charge). Unpaid fines from government authorities can lead you into a lot of financial trouble. They can use bailiffs to seize goods from your property or office and even end you up in prison for more serious offences. If you have CCJ’s (County Court Judgments) against you and are receiving letters and phone calls, seek professional advice from a debt advisor immediately.
- Utility Bills. These can be troublesome not to mention terribly inconvenient. However, most utility companies help you to get out of debt by providing repayment programs you can take advantage of.
Securing debt help from professionals can straighten out your priorities. The UK Debt Advisor can help you prioritise which one is most likely to have the worst consequence if the debt is left unpaid.