Task
2: Get together a list of your
non-priority debts
So now we’ve looked at your
priority debts, it’s time to look at how to deal with lower priority debts. These are your unsecured, personal debts. When a debt is unsecured, it means that you didn't 'secure' it against an asset when you took it out, such as your house or car.
Your unsecured debts include:
- Personal loans
- Credit cards
- Overdrafts
- Store cards
- Catalogue debts
- Payday loans
- Cancelled contracts e.g. old
mobile phone debts
These debts are classed as ‘non-priority’
because the consequences of not paying these are less severe than not paying
your priorities.
Once you know how much money you have left over from your priority debts, you can then think about how to deal with your non-priority debts.