Prioritising debt 'the best advice'

The best advice for people in debt is to prioritise your repayments, it has been claimed.

According to Beccy Boden Wilks, spokesperson for the Money Advice Trust, priority debts are rent, mortgage, council tax, gas and electric.

Any debts which mean the consumer loses something in the event of default – for instance, the gas being disconnected or the home being repossessed – should not be left unserviced, she added.

Ms Boden Wilks added: "Seek independent advice as soon as possible. Debt advice is free, you do not have to pay for it."

Earlier this month, Tim Heming told the Sun that debt repayment options such as consolidation loans may be able to help consumers manage money difficulties.

He added that by taking out a consolidation loan, individuals can pay off all their outstanding debts and revert to a single monthly payment, making it easier for them to organise their finances.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2009-10-12 14:15:21 © Moneyextra.com