Paying special attention to high stakes debt
Some debts should take priority over others, as the repercussions of falling into arrears on these are especially severe e.g. particular kinds of debts may carry the risk of repossession, eviction or even jail time.
Critical debts may include:
- Mortgage/ bond
- Vehicle finance
- Utility bills and rent
- Medical bills and child maintenance
- Income taxes
- Student loans
If you suspect that you won’t be able to afford your payments on high stake debts, it may be wise to approach a consumer law attorney. They will help you to avoid defaulting. If you are already in arrears and at risk of legal action, repossession etc. you should get in touch with National Debt Advisors before it gets too late.
Good Debt and Bad Debt
The truth is that credit providers do want over-indebted consumers to become debt free again, so they can take out loans and use credit cards again. How you manage a debt and why you took it out will determine whether it is good or bad. As a rule, you should never take out too many debts as this will harm your credit record. Also, always ensure you are earning significantly more than you owe.