Stage 5: Deal with your priority debts
It is best to reach agreements on priority debts before you make any offers on non-priority debts. That way, you know whether you have anything left for non-priority debts and how much.
Contact your priority creditors as soon as possible. Make your offer if you can but, if you do not know how much you can afford, tell them you are dealing with the situation and will make an offer soon. The quickest way to contact creditors is often by phone but make sure you get written confirmation of any agreement.
Start making payments as soon as you can, even before the creditor has said whether they will accept your offer. Getting payments often encourages a creditor to accept the offer.
Clear priority debts as soon as possible, because of the extra powers the creditors have and in case you have other financial difficulties in the future. Payments to priority debts should be higher than payments to non-priority debts.
Get more information on dealing with specific priority debts on our priority debt advice pages.