When trying to discover the right type of debt management advice you may come across the term ‘priority debts’. Understanding what this means is essential when sorting out your finances, as you need to establish what your priority debts are.

An expert debt advisor should be able to explain the differences between priority debts and non-priority debts, and this will help them come to a debt solution which is right for you. Obviously all your debt is important, but priority debts are those which carry huge consequences if you miss payments, such as repossession if you fail to keep up with your mortgage payments.

Priority debts include:
* Mortgage or rent payments
* Council tax
* Utility bills
* Court fines
* Hire Purchase
* Other debts secured against your home, such as a secured debt consolidation loan

Non-priority debts include:
* Unsecured loans
* Store cards
* Credit cards
* Overdrafts

If you go into a debt solution, such as an IVA or Debt Management Plan, we will always take account of how much you need to pay to your priority debts and ensure that these are affordable to you. After that we will then work out how much you can afford to pay to your non-priority debt.