Working out which debts to pay first
It’s important to understand which bills to pay first, especially if you’re in debt.
While unsecured credit lenders, like pay day lenders, may shout loudest, rent, utility bills and council tax should be paid first. These ensure you continue to have a home and heating.
On this page, we will explain what are priority and non-priority bills and show you what could happen if you don’t pay.
If you’re having problems paying priority bills or debts we can help with expert debt advice.
Your options for dealing with debt
Wondering which options are available to help you pay off your debt? Download our factsheet below and we'll talk you through your options:
Debt and Money Fact Sheet[pdf] 189KB
As always - if you'd like some help or have any further queries or questions, please get in touch with our Money Advice Team using the contact details on this page.
What are my priority bills/debts?
Priority Bills | Consequences of not paying |
Rent | You could lose your home |
Council Tax | Fine, imprisonment, money taken direct from wage/benefits or visit from bailiffs |
Certain payments ordered by the courts | Imprisonment, money taken direct from wage/benefits or visit from bailiffs |
Gas and electricity | Disconnection, money taken direct from wage/benefits, County Court Judgement |
TV License | Fine |
Telephone | Disconnection, County Court Judgement |
Court fines | Fine, money taken direct from wage/benefits or visit from bailiffs |
Secured loans | County Court Judgement, loss of goods |
Child maintenance | Fine, imprisonment, money taken direct from wage/benefits or visit from bailiffs |
What are my non-priority bills/debts?
Below are classed as non priority bills. Usually the consequence of non-payment of these items is less severe than a priority bill:
- Credit card debts
- Catalogue debt
- Water rates arrears
- Bank overdrafts and loans
- Personal loans with finance companies
- Loans with loan sharks
- Money borrowed from friends and family
- Hire purchase agreements (HP)
- Unsecured bank and payday loans (loans that are not secured against your property)