Key points
- Priority debts come first, regardless of size
- Rent, mortgage, council tax and energy are priority debts
- Court fines, child maintenance and TV licence are too
- Credit cards, loans and overdrafts are non-priority
- Never borrow to pay a non-priority debt
What are priority debts?
- Rent and mortgage arrears, and loans secured on your home
- Council tax
- Gas and electricity
- Magistrates' court fines
- Child maintenance
- Income tax and VAT
- TV licence
- Hire purchase or logbook loans if you need the vehicle
Why do they come first?
Missing these payments can lead to eviction, repossession, disconnection, bailiffs or even prison in rare cases. Non-priority debts are still important, but the consequences are less severe.
What are non-priority debts?
Credit cards, store cards, personal loans, overdrafts, payday loans, catalogue debts, buy now pay later and money owed to friends or family.
How to get on top of things
- Write down your income and essential spending.
- Make sure your priority bills are covered.
- Offer what's left fairly to your other creditors.
- Get help early if there isn't enough to go round.
Frequently asked questions
Is a credit card a priority debt?
No. Credit cards are non-priority debts, though you should still deal with them.
Is council tax a priority debt?
Yes. Not paying can lead to court action and bailiffs, so it should come first.
What should I do if I can't pay my priority debts?
Contact the creditor straight away and get debt advice. Breathing Space may also help in England and Wales.
Free debt advice is available
You can get free, impartial debt advice from not-for-profit organisations through MoneyHelper's debt advice locator.
Sources and further reading
This guide is general information, not advice, and was correct when last updated. Rules and limits can change. Speak to a regulated adviser about your own situation.