One of the main reasons why people fail to get out of debt is the they cannot decide which debt to payoff first and which one to give more priority. People should pay great attention to this ans should also focus on this matter because if not taken the right decision you could be sweeped into a more worse condition. For you readers to understand which debts should be given more attention I have clealy described below.
Priority Debts :-
The extreme important debts on which you shpould focus first are those which could lead to losing your home since it's extremely difficult and next o impossible to live without a home. Now, for sure this includes your rent areas or any other loan that you have secured on your home. It also includes your utility bills.
Now there could be some debts you could lead to severe consequences like imprisonment if not paid off. This includes debts like which you owe to the government like income tax, court fines, etc. This debts should always be on top in your debt priority list.
Non-Priority Debts :-
Now, the most common types of debt under this category include credit card balances, overdrafts and so on. Well, not paying these debts can also lead to serious consequences but not imprisonment. Losing you home can also be the consequence of not paying these debts but actually its not directly. It only happens when you get bankrupt.
So as an whole think wisely before making you list of priority debts and always focus on your energy on paying off.
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