Some debts are more urgent than others. These are known as priority debts. You could face serious consequences for not paying back these debts. They include:
- mortgage or rent arrears
- gas and electricity arrears
- council tax arrears
If you've got some money to pay off your debts, you should pay back priority debts first.
After that you can deal with any less urgent debts such as credit card debts, overdrafts and other loans. These types of debts are known as non-priority debts.
If you are dealing with non-priority debts, reduce your most costly ones first. These are the ones with the highest interest rates or late-payment fees.
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