Last updated: 4 November 2026. General information for the UK, not regulated debt advice.
It’s a horrible feeling: you’ve looked at your bank balance, looked at the bills due before payday, and the numbers just don’t meet. Maybe your hours were cut, a big bill landed out of nowhere, or everything simply costs more than it used to. Whatever the reason, you’re not the only one, and there are things you can do today that make this month much less frightening.
This guide is a calm, step-by-step checklist for when you can’t pay all your bills. It tells you what to pay first, what to say to the people you owe, where to find emergency help, and when to call a free adviser.
It’s part of my debt and credit UK guide.
Need to talk to someone now? National Debtline: 0808 808 4000 (England and Wales). StepChange: 0800 138 1111. Citizens Advice: 0800 144 8848 (England). All free and confidential.
Step 1: Take a breath and get the full picture
Panic makes us avoid things. Instead, grab a piece of paper and write down:
- How much money you have until next payday (or next benefit payment).
- Every bill due before then, with the amount and date.
- Essentials you need to get through: food, travel to work, medicine.
Seeing it written down turns a cloud of worry into a list you can work through.
Step 2: Pay your essentials and priority bills first
When you can’t pay everything, the order matters more than the amount. Cover these first:
- Food and essentials, including travel to work so you can keep earning.
- Rent or mortgage.
- Council tax.
- Gas and electricity.
- Other priority debts: court fines, TV Licence, child maintenance, money owed to HMRC.
Then, with whatever is left, pay what you can towards non-priority debts like credit cards, loans, overdrafts, Buy Now, Pay Later and water.
Why this order? Falling behind on priority debts can lead to losing your home, enforcement agents or court action. My guide to priority vs non-priority debts explains each one.
Step 3: Contact the people you owe, before the payment is missed if you can
This is the step most people dread, but it usually helps the most. Creditors deal with this every day, and many have support teams for customers in financial difficulty.
What to say (simple script):
“Hi, I’m calling because I can’t pay my full bill this month. My income has dropped [or: I’ve had an unexpected cost]. I can pay £[amount] on [date]. Can you put a note on my account and tell me what support you offer?”
What to ask for: – A payment break or reduced payment for a month or two – Spreading the bill over a longer period – Freezing interest and charges – Holding off on collection while you get advice
Tips: – Only offer what you can really afford. – Ask for the agreement in writing. – Note the date, time and name of who you spoke to.
Bill by bill
- Council tax: contact your council straight away. GOV.UK says you can ask to spread payments over 12 months instead of 10, and check whether you qualify for a discount or Council Tax Reduction. If you miss a payment and don’t pay within 7 days of a reminder, you can lose the right to pay in instalments. Try my council tax discount calculator.
- Energy: Ofgem says you can ask your supplier for a payment plan, a payment break or reduction, a review of your payments, or help from a hardship fund. Also check yourenergy Direct Debit isn’t set too high.
- Rent: talk to your landlord or housing association early. If you get Universal Credit or Housing Benefit, ask your council about a Housing Payment through the Crisis and Resilience Fund in England, or a Discretionary Housing Payment where available elsewhere.
- Mortgage: call your lender. They have to consider options like a temporary reduced payment.
- Water: ask about payment plans and social tariffs, which can reduce bills for people on low incomes.
- Credit cards and loans: ask for a reduced payment and frozen interest. Missed payments can be reported to credit reference agencies, so contacting them early helps.
Step 4: Don’t borrow your way out of this month
When money is short, it’s very tempting to grab a payday loan, use an unarranged overdraft or put bills on a credit card. These can turn one tough month into a much longer problem because of high costs.
Try the options in Step 5 first. If you’re thinking about borrowing just to cover essentials, please speak to a free debt adviser before you do.
Step 5: Find emergency help you might be missing
Lots of help goes unclaimed. Check these:
- Crisis and Resilience Fund: in England, councils run local crisis support from this fund (it replaced the Household Support Fund in April 2026). Search “[your council] crisis support”.
- Benefits check: use a free benefits calculator (linked from GOV.UK) to see if you’re entitled to Universal Credit, Pension Credit or other help. My free money help guide lists the main ones.
- Universal Credit advance or Budgeting Advance: if you’re on or applying for Universal Credit, you may be able to get an advance. It’s repaid from future payments, so only take what you need.
- Warm Home Discount and energy grants: see my Warm Home Discount guide.
- Your energy supplier’s hardship fund.
- Food banks and community pantries: Citizens Advice, your GP or school can usually give a referral.
- Free school meals and Healthy Start if you have children.
- Your employer: some offer hardship funds, salary advances or employee assistance lines.
Step 6: Find a little extra money (if you can)
This isn’t about blaming you. It’s about seeing if there’s anything quick that helps this month:
- Pause or cancel subscriptions you can live without for now. My guide to cancelling subscriptions shows how to find them all.
- Sell something you don’t use: my list of things to sell for cash has ideas that sell quickly.
- Shop smarter for food this month: my grocery bill guide has quick wins.
- Check for refunds or money owed to you, such as an overpaid energy account in credit.
Step 7: Get free debt advice if this isn’t a one-off
If you’re short every month, or you’re using credit to pay for essentials, it’s time to get free help. A debt adviser can:
- Check your budget and benefits
- Negotiate with creditors for you
- Apply for Breathing Space: in England and Wales, up to 60 days’ protection from most creditor action, with most interest and charges frozen
- Explain options like a debt management plan, Debt Relief Order, IVA or bankruptcy
It’s free, confidential and they won’t judge you. Have your bills, payslip or benefit statement and bank statement handy, but don’t let not having everything stop you calling.
Step 8: Plan for next month
Once you’re through this month, a few small steps help stop it happening again:
- Make a simple budget. The 50/30/20 rule is an easy starting point.
- Move bill dates to just after payday.
- Start a tiny buffer, even £10 a week. My £1,000 emergency fund guide shows how to build up from nothing.
- List your debts and make a plan with my step-by-step guide to getting out of debt.
Can’t pay bills: people also ask
What should I do if I can’t pay my bills?
Pay for food and essentials first, then priority bills like rent, council tax and energy. Contact the people you owe before you miss a payment if you can, offer what you can afford and ask what support they have. Check for emergency help and benefits, and speak to a free debt adviser if this keeps happening.
Which bills should I pay first when I’m short of money?
Rent or mortgage, council tax, gas and electricity, court fines, TV Licence and child maintenance come first, because falling behind can lead to serious consequences. Credit cards, loans, overdrafts and water bills come after.
What happens if I miss one bill payment?
Usually a late fee, and for credit accounts the missed payment may be reported to credit reference agencies. For council tax, you get a reminder with 7 days to pay before you can lose the right to pay in instalments. Contacting the company quickly can often stop things escalating.
Can I get emergency money from the council?
Many councils offer crisis support, such as help with food, energy or essential items. In England this is funded by the Crisis and Resilience Fund. Contact your council or search its website for “crisis support”.
Will not paying bills affect my credit score?
Missed payments on credit cards, loans, phone contracts, energy and some other accounts can be reported to credit reference agencies and stay on your file for six years. Agreeing a payment arrangement can limit the damage, so contact the company early.
Is it OK to use a credit card to pay bills?
It’s usually best avoided if you can’t clear the card next month, because interest can make a short-term problem last much longer. Try the help options above first, and speak to a free debt adviser if you’re relying on credit for essentials.
Summary
- Get the full picture, then pay essentials and priority bills first.
- Contact creditors early and offer what you can afford.
- Avoid high-cost borrowing.
- Claim every bit of help you’re entitled to.
- Get free debt advice if this isn’t a one-off.
Next step: read which debts to pay first, or go back to the debt and credit UK guide.
General information only. I’m not a debt adviser. If you’re struggling, please contact a free, confidential debt advice service.
Sources (checked 4 November 2026): Official source for corrected claim · MoneyHelper: how to prioritise your debts · GOV.UK: council tax arrears · Ofgem: help if you can’t afford your energy bills · GOV.UK: free debt advice