When you’re facing debt, all money owed might look the same. But that’s not the case. Some debts will come with faster, more troublesome consequences than others. This article will help you to prioritise your debts, and identify when to seek debt advice from experts.

So, what exactly do we mean by prioritise? Well, we don’t just mean those that are the highest in cost. What we mean is that some debts should take priority over others due to the severity of their consequences and should therefore be paid back as priority. Here are some examples of priority debts: Council Tax; TV Licence; Court Fines; Child Maintenance; National Insurance, Income Tax and VAT; Mortgage Payments; Rent.

You should also prioritise any loans that you have taken out against your home or property.

When we talk about the consequences for such debts being more severe, it’s because they could include overwhelming incidents such as bailiffs visiting your home or property, receiving a court summons, having access to lighting, heating and gas stopped due to unpaid bills, or even losing your home against loans that are not being paid back.

It can be overwhelming even simply considering where and how your debts are stacking up. If you feel you could benefit from some expert advice on how to prioritise your debts, there are debt solution companies that can do just that.

Even debts that don’t fall into the high-priority category, such as credit card debt, personal loans and overdrafts, still need to be considered before they rack up.

When considering your priority debts, try to list them in order of highest cost first in order to deal with the most expensive debt as quickly as you can. Most debts accept a minimum payback programme, but you can benefit by paying more than the minimum on more expensive debts, if you can afford to.

If you are already facing any of the consequences we mentioned above, don’t panic. Start by seeking advice and help from a professional debt agency. They will be able to carefully assess your current situation and advise next steps to help you avoid further consequences. Even if you are struggling with non-priority debts and loan repayments, it can be helpful to seek advice. Knowing how to best manage your debts is the starting point to becoming debt free.