Priority And Non Priority Debt


Now a day’s average UK families are trying hard to keep all financial balances. Reason why people of UK fell in to debt:
1) They try to satisfy many creditors at thesame time.
2) Relationship split due to divorce.
3) Significant fall in family income.
4) Unemployment
5) New baby born.
6) Debt Spiral: Borrow loan from a creditor in order to satisfy other creditor.
Difference between priority debt and non priority: Priority debt is one which directly impact on health of members of family. Non priority debt is one which is paid after marinating priority debt. Credit unions, catalogues, Provident are this type of debt.
Key Priority Debts Are:
Utilities: electricity, water etc.
Loans: These debts are secured against your property.
Car Purchase: Vehicle finance is a form of Personal Loan.
Mortgage: There is higher no of repossession has been occurred in year 2006