Which is more important?

zenshi

Having a difficult time again

I have unexpectedly got a new debt! Child tax credit apparent overpayment, now sent to DCA

Anyway, to my question, apart from the credit cards I have what I would call 3 important debts. Mortgage arrears, NI contributions and now this tax credit one. Should I concentrate on one over the others?

Issuma

I'm no expert but I would have thought your Mortgage was the most important

Tixy

Hi

All 3 of those are definitely important, but I agree I would focus on the mortgage arrears first. How long is it likely to take you to clear the mortgage arrears at the current rate you are repaying?
Do you have a formal agreement with the mortgage co as to how much you are repaying to the arrears?

As the tax credit overpayment is being handled by a DCA does that mean that you are no longer claiming any tax credits at all (as if you are they usually deduct the overpayment from the current payments).
If it does then I would write to the DCA to offer a low monthly payments at a rate you can afford.

zenshi

Mortgage arrears I guess is formal, I have a letter agreeing to my payment. I think if I carry on paying as I am, then it will take around year and half maybe.

I'm not sure of the implications re not paying Nzi contributions...I'm self employed

The tax credit thing is hard. It was apparently an overpayment on child tax credits 4 years ago. I appealed and never any more till earlier this month from the DCA. I had assumed I won the appeal as I still claim tax credits and my payments weren't deducted from.

Technically they were two different claims ie child tax credit and plain tax credits?! The DCA will not take any less than £40 per month which I can't do, so have referred it back to the tax credit people and suggested I contact them regarding payment . DCA said they will refer it back with a wants to pay but can't statement