Know your priority debts
When money is short, some debts threaten your home, energy or liberty faster than others. Pay priorities first — then tackle the rest with a plan or free advice.
Not all debts are equal when cash runs out. Priority debts carry the most serious consequences if unpaid: losing your home, bailiffs for council tax, disconnection risk for energy, or enforcement of court fines and some tax debts. Credit cards, unsecured personal loans, overdrafts and store cards usually sit as non-priority — still important, but they should not jump the queue ahead of the roof over your head.
Typical UK priority debts
Common priorities include: rent or mortgage; council tax; gas and electricity; court fines; and certain HMRC tax debts. Child maintenance can also sit in this serious category. Exact enforcement routes differ by debt type and nation of the UK, but the theme is the same: consequences escalate quickly.
If you are behind, contact the creditor early, explain your situation, and ask about repayment arrangements. Ignoring letters rarely helps.
Open every envelope. Council tax and energy firms escalate on timetables that can feel sudden if you have been avoiding the post. If a bailiff letter arrives, get free advice the same day — do not negotiate solely on a doorstep under pressure. Keep a simple log of who you called, when, and what was agreed.
Housing associations, private landlords and mortgage lenders have different processes, but early communication is the common thread. For mortgages, missed payments are especially serious; contact the lender and a free adviser before arrears snowball.
MoneyHelper’s guidance on prioritising is essential reading: how to prioritise your debts.
Non-priority debts still need a plan
Credit cards and personal loans can lead to county court judgments and bailiffs eventually, but the immediate risk is usually lower than eviction or magistrates’ enforcement for council tax. Offer what you can afford after priorities and essentials — a token offer is better than silence if that is truly all you have, and free advisers can help you calculate a realistic budget.
Do not borrow more to pay non-priorities while priorities sit unpaid.
Breathing Space and advice
If everything feels overwhelming, free debt advisers can discuss options including Breathing Space (debt respite) where eligible, debt management plans, and other solutions. Start with StepChange, National Debtline, Citizens Advice or MoneyHelper rather than paid lead-generators.
Worked UK example: £200 left after essentials
The Okonkwos have £200 left after food and travel. They are £180 behind on council tax, £90 behind on the electricity bill, and have a credit-card minimum of £75 due plus a store-card minimum of £40.
They pay the council tax and energy arrears first (priorities), then contact both card lenders to explain a temporary reduced payment on the non-priorities. They also book a call with a free debt adviser the same week. Paying the cards in full while ignoring council tax would have been the costlier mistake in enforcement terms.
Step-by-step checklist
- List all debts and mark priority vs non-priority.
- Budget for essentials: housing, energy, food, travel to work.
- Contact priority creditors immediately if you are behind.
- Offer affordable payments on non-priorities after priorities are covered.
- Stop using credit to patch priority arrears.
- Keep copies of all letters and payment plans.
- Book free debt advice if the budget still does not close.
Common mistakes
- Paying whichever debt collector phones most often.
- Treating credit cards as equal to rent or council tax.
- Ignoring council tax reminders until bailiffs are involved.
- Borrowing at high cost to rotate non-priority balances while priorities slip.
When to get regulated help
Use MoneyHelper’s priority debts guide and contact StepChange, National Debtline or Citizens Advice. For council tax and benefits interactions, also check GOV.UK.
Frequently asked questions
Is a credit card ever a priority debt?
Usually no. It becomes more serious after court action, but rent, council tax and energy typically still come first. Ask a free adviser if you are unsure.
What about parking tickets?
Many penalties can escalate if ignored. Treat formal fines seriously and get advice if you cannot pay — do not assume they are “optional”.
Should I use my credit card to pay rent?
That often turns a priority into expensive unsecured debt and can deepen the hole. Speak to a free adviser about safer options.
Does priority order differ in Scotland?
Enforcement systems differ across the UK. Use nation-specific guidance from MoneyHelper or local advice services.