Which order do I tackle debts

Bluehorizonn

Hi

My husband and I are looking to pay off debts totalling £19k - £14000 are HMRC (from partnership bus inc paye and vat plus self assessment) the rest is £2k very, £3k next and £500 cc. We have had to stop trading and look for jobs - just making ends meet - been talking to step change. We have a car we own worth £8 - we are selling to buy one for £3k and will pay off some debt with £5k.

Should we clear next and very to get rid if two creditors and orotect credit rating? Or pay it off revenue balance. Looking to make payment plans on what's left - no more tax accruing.

Any advice gratefully received.

joedenise

HMRC is a priority debt and needs to be paid off first.

Denise

Poppops

There is no question in my mind. You make the most minimum payment you can to Next, Very and your CC and pay HMRC. You want to be in their debt as short a time as possible.

Your other creditors are small fry in comparison.

Have you spoken to their debt management team?

If I were you, my credit rating wouldn't even be a factor. My parents owed HMRC after their business failed. I don't think they were as open to repayment plans in those days. It wasn't pretty and took our family many years to recover. I would deal with them as soon as possible.