What Is a Priority Debt?
A priority debt is a debt that can have serious consequences if it is not paid. These debts should usually be dealt with before non-priority debts because they could affect your home, essential services, freedom, or ability to meet basic needs.
Common Priority Debts
Priority debts can include:
- Rent arrears – you could be at risk of eviction.
- Mortgage arrears – you could risk losing your home.
- Council Tax arrears – enforcement action or deductions from benefits may follow.
- Gas and electricity arrears – your supply could be restricted or a prepayment meter installed.
- Water arrears – although disconnection is not allowed, debt recovery action can be taken.
- Court fines – non-payment can lead to enforcement action.
- TV Licence fines – if ordered by a court.
- Child maintenance arrears – enforcement action may be taken.
- Benefit overpayments – repayments may be deducted from benefits.
- Income Tax, National Insurance or VAT debts – HMRC can take recovery action.
What Are Non-Priority Debts?
Non-priority debts are debts that usually have less severe consequences if payments are missed.
Examples include:
- Credit cards
- Store cards
- Personal loans
- Payday loans
- Overdrafts
- Buy Now Pay Later agreements
- Catalogue debts
These debts are still important, but priority debts should normally be addressed first.
What Should I Do If I Have Priority Debts?
If you are struggling to pay priority debts:
- Do not ignore letters, emails or phone calls.
- Contact the organisation you owe money to as soon as possible.
- Seek free debt advice.
- Create a budget to understand your income and essential spending.
- Check whether you are receiving all the benefits and support you are entitled to.
The sooner you seek help, the more options are likely to be available.
Need Help?
Our advisors can help you:
- Understand which debts should be tackled first.
- Create a realistic budget.
- Explore repayment options.
- Check for benefits and other financial support.
- Communicate with creditors on your behalf where appropriate.
Contact our team for free, confidential advice and support.