Prioritise your debts

List your debts in order of scariness. Take another look at the list of people you owe money to and think about which are the most important. Mortgage or rent arrears are likely to be your biggest worry. Paying your utility bills is also important.

Hire purchase debts will probably come next on your list, because if you have paid less than a third of the total cost, the goods can be repossessed without a court order.

Credit card bills and loans for luxury items such as hi-fis and holidays are likely to come near the bottom of your list of priorities. That doesn't mean, of course, that it is any less important to pay these off. But it's better to have a roof over your head than a credit card in your pocket.