Step 3 Choose your debt solution 3 Making higher payments to personal debts can also be an issue if you decide to use an insolvency solution, such as a DRO, IVA or bankruptcy. You may be seen as showing preference to your personal creditors. Contact us for advice, if you want to discuss this. Water rates arrears You cannot be disconnected for owing money to your water company. Include any water rates arrears with your other non-priority debts, but keep up with your ongoing bills so your debt does not get any bigger. See our Water rates arrears and water trust funds fact sheet. Student loans Most student loan repayments are taken directly out of your wages if you earn over a certain amount. See our Student money and debt fact sheet for how this is worked out. However, if you took out a student loan for a course that started before September 1998, you will have a mortgage-style loan. These loans are paid back over a fixed number of instalments, regardless of the amount you borrowed. All mortgage-style loans were sold to Erudio Student Loans Ltd, Honours Student Loans Ltd and Thesis Servicing, who now collect the debt. They are non-priority debts. If you have a mortgage-style loan and are on a low income, you may be able to ask for a deferment. This is where you postpone payments for 12 months. Contact us for advice, if you are considering this. Mortgage shortfalls You may still owe money if your home was repossessed or you handed back the keys to your mortgage lender. This is called a mortgage shortfall. They can be quite large debts, but they are still a non-priority. Your lender has longer than most non-priority creditors to take court action for any mortgage capital that you owe. However, there are guidelines that your lender should also follow. See our Mortgage shortfalls fact sheet. What is mortgage capital? Mortgage capital is the money that you originally borrowed. It does not include the interest you were charged to borrow the money. Page 97