Prioritisation is a key strategy that consumers should consider if they are struggling to manage their debts, one expert has suggested.
Money Advice Trust spokesperson Beccy Boden Wilks recommended ordering debts in terms of importance and seeking help from an independent adviser as quickly as possible for people who are having difficulty coping.
“Priority debts are rent, mortgage, council tax, gas, electric and also debts which if they are not paid mean you will lose something ie gas – disconnected; mortgage – possible home repossession,” she explained.
Ms Boden Wilks made her comments following a report funded by her organisation and the Finance & Leasing Association – carried out by The Royal College of Psychiatrists and Rethink – which linked debt to mental health problems.
She said that the National Debtline regularly deals with clients who have visited a doctor for stress or feel depressed as a result of their financial situation.
By Chris Trimble