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Don’t prioritise debt repayments based on who shouts the loudest.
Thursday, August 23rd, 2007Those most actively chasing payments do so as often they have least legal right to your money.
If you fall behind with loan or other repayments, pay your highest priority debts first. For example debt that could eventually result in imprisonment (ie court fines) or repossession (ie secured debts) should be addressed before unsecured creditors.
Unsecured creditors know they can’t legally ask more from you than you can realistically afford each week or month. They also know that if are struggling repaying money owed to them, you’re likely to have other debts to other creditors you are also struggling with. Therefore they are clambering to get you to pay them ahead of everyone else.
Either treat all creditors equally, or make lower payments towards debts with the lowest interest rates while targeting higher interest debts.
If you find that creditor calls are getting out of hand then you may need professional help.
An Abacus Debt Mangagement Programme will deal with all creditors on your behalf, greatly reducing any stress.
An IVA will, subject to acceptance, stop ALL creditor contact.
Feel free to call me direct on 0161 905 8813 for some free advice.