The debts that you need to deal with first are your mortgage/rent payments, your rates or fuel bills such as gas and electricity. These are known as priority debts and if you don't keep up the payments on these, you could lose your home, be sent to prison or be disconnected. If you find that you cannot keep up with these types of payments then seek help as soon as possible.
Types of Debt
Unsecured credit is where you have been lent money that has not been secured against something that you own i.e. your home or your car. Examples of unsecured debt are credit cards, catalogues, bank loans, overdrafts and store cards. If you fall behind repaying unsecured credit, the creditor cannot take any of your property or goods unless in extreme circumstances they take court action. If you find yourself in this situation, please seek advice from one of our Debt Action advisors immediately.