Stage 5: Priority Debts - How Do I Pay?
After you have looked at all of the
information in stage 4, decide how to divide up your Money for Creditors
to pay your priority debts. You worked out your Money for Creditors at Stage 3,
and wrote it in your Personal
Budget.
You must pay your priority debts first. Contact each creditor and make them an
offer. If the person you speak
to cannot help, ask to speak to a Supervisor or a Manager and get their names if
you can. If the creditor
asks you for more than you can afford, get some advice.
When you have agreed payment arrangements for your priority debts, add them to
your Personal Budget.
EXAMPLE HOUSEHOLD
In our example, Ian and Jane Brown have the following priority debts:
Rent arrears £600
Electricity bill £130
They agree to pay £3 per week off their rent arrears.
The electricity company agrees to install a card meter. Their electricity will
then cost them a total of £14 per
week - £12 per week for the electricity they use plus £2 per week off the
arrears.
|
Debt |
Amount
Owed |
Weekly / Monthly
Repayments |
|
Rent Arrears |
£600 |
£3.00 |
|
Mortgage Arrears |
_____ |
_____ |
|
Secured loan arrears |
_____ |
_____ |
|
Council Tax arrears |
_____ |
_____ |
|
Gas |
_____ |
_____ |
|
Electricity |
£130 |
£2.00 |
|
Other |
_____ |
_____ |
|
Magistrates Fines |
_____ |
_____ |
|
Maintenance Arrears |
_____ |
_____ |
|
Other |
_____ |
_____ |
|
TOTAL PRIORITY DEBT PAYMENTS |
£5.00 |
Now that you have sorted out your priority
debts, the last thing you have to do to complete your Personal
Budget is to deal with your the debts you owe to people who have lent you
money – your Credit Debts.