You have chosen a priority debt.
‘Priority’ means your creditors can ask a court to take your home or send you to prison if you don’t pay. But you can take action yourself to stop this happening.
7 steps to controlling your debts
You can take action now to stop your debts getting out of control.
- List all the people and companies you owe money to and how much you owe to each one. These are your ‘creditors’.
- Look through your list. Decide which ones are priority debts and which are non-priority and add this information to your list. Check using StepChange – what to pay first. If you only have one debt then skip this step.
- Work out what stage the debts are at. Check using What stage are my debts at? Add this information to your list.
- If you have priority debts put them at the top of your list. Put other priority debts underneath. Then put the non-priority debts last.
- Do a Personal Budget to work out how much money you can use to pay your debts. You will have to show your Personal Budget to creditors to get them to accept less money from you. Find help with Personal Budgets
- Start with the worst priority debts. Take the actions shown on What stage are my debts at? for each one.
- See if you can increase the amount of money you can use to sort out debts with. Find help increasing your income.
If you need more help choose Find a local adviser below.