Money, Debt and Benefits Help Centre | What Is a Non-Priority Debt?

What Is a Non-Priority Debt?

A non-priority debt is a debt that does not usually carry immediate consequences such as losing your home, having essential services affected, or facing court enforcement for non-payment.

While non-priority debts should not be ignored, they are generally considered less urgent than priority debts. If you are struggling financially, it is usually important to deal with priority debts and essential household costs first.

Understanding the difference between priority and non-priority debts can help you make informed decisions about managing your money and reducing financial pressure.

What Makes a Debt Non-Priority?

A debt is considered non-priority because the consequences of not paying it are generally less severe in the short term.

For example, missing a credit card payment can cause financial difficulties and may affect your credit rating, but it is unlikely to put your home at immediate risk.

When money is limited, non-priority debts are often dealt with after:

Rent or mortgage payments.
Council Tax.
Utility bills.
Court fines.
Other priority debts.

Common Examples of Non-Priority Debts

Non-priority debts often include:

Credit Card Debt

Money owed on credit cards is one of the most common forms of non-priority debt.

Personal Loans

Loans from banks, building societies or other lenders are generally considered non-priority debts.

Overdrafts

Using more money than is available in your bank account can create an overdraft debt.

Store Cards

Store card balances are typically treated as non-priority debts.

Catalogue Debt

Money owed to catalogue companies is usually considered non-priority.

Buy Now, Pay Later Agreements

Missed payments can result in additional charges and impact your credit rating.

Payday Loans

Payday loans can become expensive if repayments are missed, but they are generally classed as non-priority debts.

What Happens If I Don't Pay a Non-Priority Debt?

Ignoring non-priority debts can still lead to serious problems over time.

Possible consequences include:

Late payment fees.
Interest and charges being added.
Debt collection activity.
A negative impact on your credit record.
Court action in some circumstances.
Increased financial stress.

For this reason, non-priority debts should not be ignored, even when you are focusing on priority debts first.

Should I Stop Paying Non-Priority Debts?

Not necessarily.

If you're struggling financially, it's important to assess your entire financial situation before making decisions about repayments.

You should:

Prioritise essential household expenses.
Identify any priority debts.
Create a budget.
Seek debt advice if repayments have become unaffordable.

A debt advisor can help you explore affordable repayment options and avoid making the situation worse.

How Can I Manage Non-Priority Debts?

There are several ways to manage non-priority debts, including:

Creating a Budget

A household budget can help you understand:

Your income.
Essential spending.
What you can realistically afford towards debts.

Contacting Your Creditors

If you're struggling, many creditors may be willing to discuss:

Reduced payments.
Temporary payment arrangements.
Freezing interest and charges.

Seeking Debt Advice

Professional debt advice can help you understand all available options.

Considering Debt Solutions

Depending on your circumstances, solutions may include:

Breathing Space.
Debt Management Plans (DMPs).
Debt Relief Orders (DROs).
Individual Voluntary Arrangements (IVAs).
Bankruptcy.

How Do Non-Priority Debts Affect My Credit Rating?

Missed or late payments on non-priority debts can affect your credit record.

This may make it more difficult to:

Obtain credit.
Access competitive interest rates.
Secure some financial products.

However, protecting your home and essential living costs should usually take priority over maintaining a perfect credit score.

Non-Priority Debt Warning Signs

You may need support if you are:

Using credit to pay for essentials.
Only making minimum payments.
Missing repayments regularly.
Relying on overdrafts every month.
Receiving letters from creditors or debt collectors.
Struggling to keep up with household bills.

Seeking advice early can help prevent debts from becoming more difficult to manage.

Common Myths About Non-Priority Debts

"Non-Priority Debts Aren't Important"

They are important and should be addressed, but priority debts usually need attention first.

"I Should Pay Credit Cards Before Rent"

Rent and other priority debts should normally take precedence.

"Debt Collectors Can Take My Home Immediately"

Creditors must follow legal processes before taking enforcement action.

"There's No Help Available"

There are a range of debt advice services and debt solutions that may help.

Need Help?

Our advisors can help you:

Identify priority and non-priority debts.
Create a realistic household budget.
Explore affordable repayment options.
Understand available debt solutions.
Improve your financial wellbeing.

Contact our team for free, confidential advice and support.

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