The vast majority of people in financial trouble across the UK will have mortgage debt, credit card debt, loans outstanding and other overdue payments. While it can be very difficult to know exactly where to start when tackling these problems it is essential that you protect your home first and then look to pay off the higher interest debt.

If you're up-to-date with your mortgage payments and there are no problems for the future then, with mortgage interest rates traditionally relatively cheap compared to loans and credit cards, you should look at paying off high interest debts with any excess funds you may have. Credit card debts are one of the more expensive debts you can have as are unauthorised overdrafts and other similar situations. However it is essential that you do not fall behind with your loan payments and other regular payments, although if you are struggling to repay the pre-agreed figures then you should try to arrange a reduced rate for the short-term at least.

As we have mentioned on numerous occasions, your creditors will appreciate an early indication of potential problems ahead rather than receiving a letter from you claiming that you cannot pay anything towards your debt - which will effectively force their hand and have potentially dire consequences for you. Where possible, payoff the highest interest debt first while ensuring that you retain your home and payoff at least something towards your other debts.

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