Debt Management

Which of My Obligations Should I Begin Repaying First?

If you are struggling under the weight of an overwhelming amount of debt, the first question you need to ask yourself is, “Which debt should I pay off first?

Bailiff Help Now is the time to answer all your questions and steer clear of all the doubts you have been holding onto for too long.

Where should you start?

The burden of debt is obviously not easy to carry especially when you have multiple debts to pay off and on top of that you are only capable of paying off just the minimum amount each month. And when you decide to prioritize debt, make sure you look to repay the debt that comes with its own problems. Possibly, the creditor wouldn’t let you breathe and keep sending bailiffs to your doorstep, prioritizing their debt as one to stop bailiffs now and get rid of them.

There are many debt solutions and free debt advice available that help you with determining which debt should be your priority, this will also help you in maintaining finances better in the future.

Which debt should you pay first?

When it comes to determining which debt you should pay first, you will have to look at it from an urgent point of view. Check to see which types of debt will cause problems if they are not paid on time. Generally, the debts that will affect you the most if left unpaid are called secured debts, which include mortgages, council tax arrears, and utility bill arrears. It is important to prioritize these debts over making payments for other debts like credit card debt and unsecured personal loans. Here’s a rundown of the debts that you must always try to pay off first and then move on to other debts:

Mortgage payments

If your mortgage loan re-payments are still pending, you must pay them off first, because mortgage debts are priority debts and need to be paid off the soonest. A mortgage loan falls under the category of a “secured loan,” which makes them important because they are usually secured against an asset, and mortgages are secured against your home.

Council Tax Arrears

Unpaid council tax is something that is usually overlooked to the point where it ends up ruining your financial stability. It should be taken as seriously as any other prioritized debt, for it can follow you long after you have moved out of your property. If you fail to pay your council tax, the council will issue you a County Court Judgement (CCJ) and take you to court for the money you owe them. Keeping council tax for later can cost you a lot more than what you were supposed to pay if you paid earlier, as they will charge you court fees if you end up in court.

Utility Bill Arrears

Free yourself by paying off your utility bills, the UK government won’t cut off your gas, water or electricity for missing out on payments but that does not mean you can keep putting it off. Since no action is being taken against it, don’t buy that they are never going to take any action against it. In fact, it can go so far that your providers may even take you to court if the bills remain unpaid, or send bailiffs for the repossession of your belongings to cover the costs. This is when you will need a reliable bailiff help team like us, experts at Bailiff Help Now have been helping people with free bailiff advice and free debt advice for over 15 years. Learn more about how to deal with bailiffs when they show up, reach out to us today!

Ways you can prioritize your debts

When you have many debts to pay off, it can get fussy to determine how to pay them off, and trying to work out a plan may get tough. The question that gets you stuck is “where to start?” Get those debts off your plate first, then focus on the rest of your financial obligations. Here’s a list of things that will be a determining factor when you are prioritizing your bills or debts

  • Consider interest rates of debts you are yet to pay off
  • Consider APR (Annual Percentage Rate) of the debts
  • Take your outstanding balances into consideration
  • Look at the urgency and outside pressure for a particular debt

Which types of debts are usually lower priorities?

It would be a relief to know that there are some debts that can allow you to take a breather while you work to pay off your highest-priority debts.

  • Student loans
  • Managed credit card debt
  • Managed consumer credit

How can I pay off my debt sooner?

In order to pay off debt sooner, your focus shifts to paying more than the minimum amount each month. That way, you can pay off your debt faster and sooner; however, it is not that feasible for everyone. And if you wish to pay off your debt as soon as possible but can’t afford to pay more than the minimum amount each month, you can try the following methods:

  1. The avalanche method
  2. The debt snowball method
  3. Strict budgeting
  4. Debt consolidation loan
  5. Debt management plan
  6. IVA

Having creditors hassling you to pay off sooner can be daunting to deal with; this is when debt consolidation can free you from creditor harassment. Bailiff Help Now is here to deal with your creditors on your behalf, so you won’t have to worry anymore about bailiffs banging at your doors. Speak to one of our qualified advisors for free bailiff help and advice today!


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