What can happen....

Different creditors are allowed different ways of recovering their money in law, which should be taken into consideration when you schedule your payments to creditors.

• Preferred creditors should be paid first. They should not be ignored under any circumstances.
• Secondary creditors should be paid only after you have reached an agreement with all preferred creditors.

Secondary creditors have less power to recover debts, but should not be ignored.

These include: -

• Unsecured loans
• Credit Cards
• Unnecessary hire purchase agreements
• Store cards
• Catalogue and mail order
• Mobile phone (disconnected)
• Repossessed house or car loans