Certain Debts take priority over other Debts.
 
These priority Debts would include Mortgage and Secured Loans.
 
Utilities are also considered as priority Debts.
 
It may well be of some interest to note that recent changes to Insolvency law means that from April 2004 both Customs & Excise and also the Inland Revenue will no longer have any preferential status where Debts are concerned.
 
Mortgages and Secured loans are in fact Debts Secured against a property and as such these take priority as your home could be repossessed if you fail to keep up any repayments on them.
 
Unsecured Debts are Debts such as Credit cards personal loans etc. and as such are less of a Debt priority than Secured Debt but nevertheless still Debt and this needs to be repaid.



Debt Facts

• British consumers are now over £1,000,000,000,000 in Debt. This Debt being made up of
Credit cards, Mortgages and Loans.

• That is over £17,000 Debt for each man woman and child in the UK.

• Most people at some time in their lives overspend and get into Debt.

• It is a fact there is more easier access to Credit than there ever has been before.

• What we have to realise is that this Credit pretty soon becomes Debt and this Debt has to
be repaid.

• There are over 13,000 various Credit cards available with the average Credit limit around £3000, although there are other Credit cards with even greater Credit limits.