Most people just pay off the latest debt they have but sometimes that causes even MORE problems. Want to learn which debt to pay off first? Read this post to help you learn “Which debt should I pay off first?”.
- Priority Debt/ Necessities
You should probably start with your priority debt because these can really affect you. Such as rent (to avoid risk of eviction), council taxes (risk of bailiffs or maybe prison), HMRC tax debts, etc. You should also include food, mortgages and transportation.
2. Non-Priority Debts/ Current Overdue
Pay any due bills such as credit cards, personal loans, payday loans, etc. To ensure you aren’t in a position where repossession and/or legal actions have to be made.
3. Minimum Debts/ Less Necessary
This is everything else to make sure you don’t have any debts at all. Be sure to focus on the other debts before getting to this step so you can live a happy/risk free life because you took care of the right debts in the right order.
Summary: Always be sure to pay off very life conflicting debts to make sure you don’t have a bad situation happen. These would be the priorities that are necessary and you absolutely must do first. Then you can pay off all other debt that aren’t less attention needed.
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