Prioritising Debts - Who First?

Often the most challenging place to start whenyou get some spare money and need to pay some creditors.

In general use this 7 point rule to repay your debts in the following order:

1. Debts owed to people that will hurt you, as obvious as this may sound.
2. High interest rate debts. These will usually be 'rolling credit' debts, such as credit and store cards.
3. Personal loans from finance companies, perhaps for a car, for example.
4. Personal loans from banks and high street lenders.
5. Second mortgages. Though these are secured, they are often at high rates of interest.
6. Loans from friends and family members.
7. Your mortgage.