As the first bills following the festive excesses begin to land on the mat, many people will be wondering just how to go about making the repayments. Often people can be up close to their credit limits before December but still feel inclined to " have a good time, buy the children expensive presents" and worry about repaying later.
Well, later has now arrived! Tactics are important here.
Debts fall into two categories, priority and non-priority. The priority ones are , as the name suggests, the most important and include rent, mortgages, council tax, utilities, hire purchase and any loans secured on your property. These must be paid in full first ( unless you have negotiated reduced payments temporarily). What you mustn't do is pay the credit and store cards first and miss priority payments. Those two along with Payday loans, mail order and Shopacheck etc have less serious consequences if a payment is missed or only a part payment is made. These are the non-priority debts.
Do not start using your credit card to make rent and mortgage payments. If you are having difficulties seek advice from the links on this site. The sooner you do so, the sooner you will regain control over your finances. Don't be put under pressure by creditors either by letter of often on the phone. They all put themselves at the top of the pile for importance, but as I've indicated , there is a strict distinction regarding the importance of debts. Finally, if you do miss a payment or payments and you receive a letter from the creditor, don't ignore it, seek advice.
Kevin Armstrong, Debt Adviser
Well, later has now arrived! Tactics are important here.
Debts fall into two categories, priority and non-priority. The priority ones are , as the name suggests, the most important and include rent, mortgages, council tax, utilities, hire purchase and any loans secured on your property. These must be paid in full first ( unless you have negotiated reduced payments temporarily). What you mustn't do is pay the credit and store cards first and miss priority payments. Those two along with Payday loans, mail order and Shopacheck etc have less serious consequences if a payment is missed or only a part payment is made. These are the non-priority debts.
Do not start using your credit card to make rent and mortgage payments. If you are having difficulties seek advice from the links on this site. The sooner you do so, the sooner you will regain control over your finances. Don't be put under pressure by creditors either by letter of often on the phone. They all put themselves at the top of the pile for importance, but as I've indicated , there is a strict distinction regarding the importance of debts. Finally, if you do miss a payment or payments and you receive a letter from the creditor, don't ignore it, seek advice.
Kevin Armstrong, Debt Adviser
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