{"id":70757,"date":"2020-05-08T12:15:00","date_gmt":"2020-05-08T12:15:00","guid":{"rendered":"http:\/\/www.badcreditloans4u.co.uk\/?p=102"},"modified":"2020-05-08T12:15:00","modified_gmt":"2020-05-08T12:15:00","slug":"reasons-you-should-prioritise-your-debts","status":"publish","type":"post","link":"https:\/\/everyonefinance.uk\/blog\/2020\/05\/08\/reasons-you-should-prioritise-your-debts\/","title":{"rendered":"Reasons You Should Prioritise Your Debts"},"content":{"rendered":"<p><strong>Reasons You Should Prioritise Your Debts<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>UK residents are often seen taking on different forms of debt, for example, mortgage, car loan, payday loan, personal loan, holiday loan and many more. Now, everybody needs money for an emergency or simply due to low savings. Debt is unavoidable in certain circumstances. Many people struggle with the questions, \u201cWhich loans should you pay off first?\u201d \u201cWhat are the likely consequences of delaying payments or missing them altogether?\u201d Read more to find out how prioritization can save money and make you debt-free faster.<\/p>\n<p><strong>How Are Debts Classified?<\/strong><\/p>\n<p>You can classify any credit you\u2019ve taken into three groups in the following order:<\/p>\n<ul>\n<li>Debt emergencies<\/li>\n<li>Priority debts<\/li>\n<li>Non-priority debts<\/li>\n<\/ul>\n<p><strong>Why Should I Pay Them In This Order?<\/strong><\/p>\n<p>There are two types of loans available- unsecured and secured loans. While unsecured loans are given based on your affordability, your assets are tied with secured loans. Timely repayments on secured loans make sense as you\u2019re at risk of losing the asset like home or car. Also, not paying off some bills can carry serious consequences. It\u2019s advisable that you clear off your borrowing in a sensible manner.<\/p>\n<p><strong>What Is A Debt Emergency and Why Does It Matter So Much?<\/strong><\/p>\n<p>When you\u2019re face-to-face with legal action by a lender or other equally serious outcomes, the situation is termed as a debt emergency. It could be anything like:<\/p>\n<ul>\n<li>County Court Judgement (CCJ)<\/li>\n<li>Bailiff action<\/li>\n<li>Disconnection<\/li>\n<li>Eviction for rent or mortgage arrears<\/li>\n<\/ul>\n<p>If you\u2019ve got a CCJ, it\u2019s in your best interests to go for the court hearing. Once in court, you can explain your financial situation and affordability. The authorities will surely consider your predicament and give a favourable decision. However, if you deliberately keep away from the hearing, you don\u2019t get to influence the judgement and may come in for further legal action like a bailiff turning up at your home or workplace. If you\u2019re struggling with debt, you can talk to a financial adviser or look up free advice on the Internet. Some courts may help you with advice organizations- Shelter or Citizens Advice.<\/p>\n<p><strong>What Are Priority Debts and What Happens If I Don\u2019t Pay?<\/strong><\/p>\n<p>These carry the most serious consequences you can think of. They don\u2019t necessarily have a huge borrowing amount or the most expensive interest rates. Here are some of them:<\/p>\n<ul>\n<li>Mortgage or rent secured against your property<\/li>\n<li>Income Tax, National Insurance and VAT<\/li>\n<li>Hire purchase agreements secured against your vehicle<\/li>\n<li>Fines imposed by the court<\/li>\n<li>Council Tax<\/li>\n<li>TV Licence<\/li>\n<li>Child maintenance<\/li>\n<li>Gas and power bills<\/li>\n<\/ul>\n<p>People tend to forget repayments or they don\u2019t have enough money. Whatever the case may be, the consequences that come with priority debts are:<\/p>\n<ul>\n<li>Bailiff visiting you at home or work<\/li>\n<li>Getting a court summons<\/li>\n<li>Heating and lighting cut off due to unpaid bills<\/li>\n<li>Becoming bankrupt<\/li>\n<li>Losing your home because you\u2019re not keeping up with repayments<\/li>\n<\/ul>\n<p><strong>What Are Non-Priority Debts and Can I Pay Them Off At Leisure?<\/strong><\/p>\n<p>Non-priority debts don\u2019t usually lead to immediate consequences in case you don\u2019t repay. But eventually, you may be called to court or visited by a bailiff to collect money. The most common forms of non-priority credit are:<\/p>\n<ul>\n<li>Personal loans<\/li>\n<li>Loans from banks or building societies<\/li>\n<li>Overdrafts<\/li>\n<li>Money lent by family or friends<\/li>\n<li>Loan accumulated on your credit card, store card or payday loan<\/li>\n<li>Catalogue, home-credit or in-store credit<\/li>\n<li>Water and sewerage bills<\/li>\n<\/ul>\n<p><strong>Useful Tips<\/strong><\/p>\n<p>Remember to pay at least the minimum on such debts. If you come into some extra cash, you could consider overpaying to be free from worry soon. Before doing this, ask your lender for any penalty or default charges. Start with the most expensive and highest priority debt first. You should also seek debt advice- online, face-to-face or over the phone.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reasons You Should Prioritise Your Debts \u00a0 UK residents are often seen taking on different forms of debt, for example, mortgage, car loan, payday loan, personal loan, holiday loan and many more. Now, everybody needs money for an emergency or simply due to low savings. Debt is unavoidable in certain circumstances. Many people struggle with [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-70757","post","type-post","status-publish","format-standard","hentry","category-loans","entry"],"_links":{"self":[{"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/70757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=70757"}],"version-history":[{"count":0,"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/70757\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=70757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=70757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyonefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=70757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}