When you are dealing with debt and you know that you need help, you will be asked by debt advisors and counselors to prioritise the bills that are essential followed by everything else. If you have this list already in hand when you arrive, you will be one step ahead, making it easier to develop a debt management plan. Here we will help you determine which bills should be viewed as essential, down to the last bill you need to worry about.

Essential Debt That Needs To Come First

Essential debts are the ones that could be devastating to you if you do not pay them. These are the debts that you need to make sure you pay every month on time.

* Mortgage - it's important to make sure you pay your mortgage on time or else your mortgage lender can repossess your home and sell it to recoup the money. If they sell it for less than what you owe on your house, then you will not only be without your home you will also have a bill for the remaining balance.

* Rent - you can be evicted from the home you are renting and the landlord can take you to court for the past rent if they so desire.

* Taxes - if you do not pay your taxes you could be facing bankruptcy or even prison.

* Utility bills - the gas, electric, water and telephone companies have varying powers, some can even disconnect your service if you do not pay the bill. You may have to pay a deposit and reconnect fee in addition to the past due balance to get the services restored.

* Hire purchase (HP) debt - this is your car payment, and if you rely on your car to get you back and forth to your place of employment you need to make sure this is paid.

* Council tax, business rates, court fines, maintenance, and child support payments all need to be paid on time or else you face a visit from a bailiff to serve a warrant and seize property from your home to pay off the debt. If they do not get enough money from the property they seize, you could be facing a prison sentence.

Non-essential Debt That Needs To Be Addressed

The rest of these debts are ones that need to be paid, but are considered non-essential and usually go into some form of repayment plan to help ease your debt. You can be taken to court for non-payment of the debt and once again, you could see a bailiff arrive at your door to seize property to pay them.

* Credit cards or store cards

* Catalogue arrears

* Bank overdrafts and loans

* Benefit overpayments

* Money that is borrowed from friends and family

* Non-essential items that are purchased via an HP

When you develop a debt management plan, these last items are usually rolled into one affordable payment that is manageable with the rest of your essential debt payments. Most debt management plans will work with your creditors to get these paid off without strapping you, making your life considerably easier and less stressful.