Assessing Your Debt
How much do you owe?
List details of all arrears (missed) payments, loans and credit commitments, and when they need to be paid. Some debts can cause more trouble than others. These are priority debts and you must deal with these first.
- Rent/mortgage arrears
- City/Town property tax arrears
- Fuel (electricity/oil) debts
- Second mortgage or secured loan
- Maintenance payments such as child support
- Income Tax
- Purchase debts
- Benefits overpayments
- Credit Card, loans and other credit debts
- Money borrowed from friends and family
Generally penalties occur only after warnings or court action. Keeping your creditors informed of your circumstances is important. Any monies you have left after paying your expenses (such as mortgage/rent, heat & light, food, etc) is called your “available income”. You can use this to pay off your non-priority creditors.