How can I repay my money owed and what assist is accessible? | EUROtoday

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Identify which payments and money owed are most pressing and pay them first, says debt recommendation charity StepChange.

That will embody your lease or mortgage repayments, and every other loans secured on the house. It additionally contains gasoline and electrical energy payments, baby help and upkeep funds, council tax, revenue tax, VAT and different taxes, TV licence funds, courtroom fines and funds.

These are all what are often called precedence money owed and payments, as a result of there will be severe penalties if you don’t pay them, similar to dropping your own home or dealing with courtroom proceedings.

You could have further money owed, similar to bank card and retailer card money owed, pay-day loans, buy-now-pay-later funds, overdrafts, unsecured loans and water payments. If you don’t pay these off, their price can spiral and will result in authorized motion or bailiffs seizing your property.

StepChange advises making an attempt to make the minimal funds on each debt to keep away from default expenses, which might have an effect on your credit standing. After that pay most in the direction of whichever debt has the best borrowing price or rate of interest.