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Dealing with your Non-priority debts: if you have no money available
If, after completing your personal budget and dealing with any priority debts, you have no income, capital or other assets with which to pay your non-priority creditors, you will be limited to the types of strategy you can use. Remember, your non-priority creditors include:
- Bank overdrafts
- Unsecured personal loans
- Credit cards
- Store cards
- Social Fund loans
- Parking penalties
- Benefit overpayments
- Most Hire Purchase (HP) or conditional sale agreements
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We strongly recommend that you seek professional advice when deciding on how to deal with your debts and contacting your creditors. You will often find that creditors are more willing to help when they know that a third party organisation is involved – for more information on where to get help and advice, please click here. However, the following information can help you to decide on how you may wish to proceed.
Strategies for dealing with your non-priority debts if you have no available money
When deciding on an appropriate strategy for dealing with your non-priority debts, if no money is available to make on offer to your non-priority creditors with, it is essential that you carefully consider what the likelihood of your situation either improving or worsening in the not-too-distant future.
For example, if you have no money available because you have recently been made redundant, what is the likelihood of you finding another job within the next three to six months?
If you have little or no income, capital or assets available to pay your debts, but your situation is likely to improve in the not-too-distant future, you may want to consider using one of the following strategies:
If you have little or no income, capital or assets available to pay your debts, and your situation is not likely to improve, you may want to consider using one of the following strategies:
Once you have decided on how you would like to deal with your debts, we would strongly recommend that you seek professional advice when dealing with your creditors. Please click here for more information on where to get advice.
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