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The Independent Automotive Aftermarket Federation

Ben - Dealing with priority debt


Date: 26-Feb-2020

What are priority debts?
Priority debts are those that have the most serious consequences if you don’t pay them. They don’t have to be the largest or have highest interest rates, but if you don’t pay them it could lead to serious problems.

 PRIORITY   NON-PRIORITY  
 Rent arrears   Overdraft 
 Gas arrears   Credit card 
 Council Tax   Loan
 Water rates   Doorstep lenders 
 Electricity arrears   Store cards 
 Benefit overpayment   Catalogues 
 Telephone   Hire purchase (non-essential, TV, etc.) 
 Mortgage arrears   Personal loans 
 Court fines and CCJs   
 Hire purchase (essential, such as a car to get you to work)   
 Secured loans (secured against your home)   
 Child maintenance  
 TV licence   
 Tax   
 VAT & National Insurance  

Why you should pay off priority debts first
The consequences of not paying off priority debts could be losing your home, receiving a court summons, being visited by bailiffs, facing bankruptcy or having your electricity or gas cut off.

How to deal with priority creditors
Don’t ignore letters or phone calls from your priority creditors. Get in touch with them as soon as possible to explain why you are in debt. There are time limits on when some creditors can go to court to get you to pay a debt. If you think the time limit has run out, you should get advice immediately.

Further sources of help

Citizens Advice www.citizensadvice.org.uk

Step change www.stepchange.org

Money advice service www.moneyadviceservice.org.uk

Talk to Ben…
If you’re suffering with debt and you work, or have worked, in the automotive industry, please get in touch. You don’t have to suffer in silence, Ben are here for you.

You can call, chat online or send an email. And, you can find out more about debt, including tips to cope with it, by returning to the Ben Debt or Top searches pages.

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