Non-Priority Debts

If you are able to pay back your priority debts then the next thing you’ll want to address is your non-priority debts. As mentioned on the ‘Make a Budget’ page, the following debts are typically referred to as non-priority debts:

  • Parking penalties
  • Student loans
  • Borrowed money from friends
  • Borrowed money from family
  • Benefits overpayments
  • Credit debts
  • Overdrafts
  • Hire purchase
  • Catalogues
  • Loans
  • Credit Card Accounts

The way you should deal with your non-priority debts will depend on whether you have any money left over at the end of each month.

You may not have any spare money after paying for your essential household expenses and priority debts. If this is the case you’re going to have to weigh out the advantages of each of the following options:

  • Make offers to creditors by your self.
  • Get a debt management firm.
  • Consolidate your loans.
  • Arrange for an IVA through or another reputable provider.

If you don’t have enough money to spare after your other payments are covered each month then you may need to sell off assets like your home or car to pay back creditors. The other two options are to ask your creditors to write off your debt or to apply for bankruptcy.

We offer free advice and guidance on all of the above options.