Priority Debt Payments

If you have some kind of debt, mortgages, unsecured loans, credit cards and loans. Maybe you have trouble figuring out which debts should be prioritized to be paid. Choosing to pay a debt that one can be a costly decision, you could end up in a worse situation than when you start to owe. Here is a guide in prioritizing your debt.

Polar pay housing costs
Mortgage payments (one right above material objects do not move to take the turn from her for repayment of a debt issue) is at the top of your priority debts. That includes second mortgages, home equity loans because it's all tied to your home. If you have a default on mortgage payments, the bank grants the top of your house and auction it off to the highest bidder. If the bank sells your house worth less than the amount you owe, the bank can still charge you for this underpayment.

Property insurance is not always necessary as the debt but it is important for you to pay for the insurance company will cancel the policy if you do not make payments. If this happens, the lender will buy insurance for you and add the premium into your mortgage payment.

Debt with collateral
Payment of a car loan is almost as important as the mortgage payments for the same reason. Car loan related to your car, the assets you use to leave and come home from work. If you have a default on a car loan payment, the lender can take back your car, auction and then send the bill for the shortfall debt.

Health Claims
Pay your medical bills, especially if you need to continue to use medical facilities. The hospital will probably try to get you to pay the debt. They can also send your bill to a collection agency or even sue you for unpaid debts.

Unsecured Debt
Prioritize your credit card debt and other unsecured debts ranging from having the highest rate to lowest interest rate. If you fail to pay your credit card debt, credit card companies will try to make you pay the debt. Then after that they will contact the debt collector. Finally, the card issuer can sue you and ask the court for permission to take one of the assets or garnish your wages.

Consider the list above, the credit card companies are on the list. Although you do not always want to face one of her in court, you have a lot of losses if late paying other debts.

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