Last updated: 4 November 2026. General information for the UK, not regulated debt advice.
If payday has been and gone and there isn’t enough to cover every bill, you’re probably asking yourself one question: which debts should I pay first? It’s tempting to pay whoever is shouting loudest, or the card with the scariest interest rate. But in the UK, that’s not always the right order.
Some debts can lead to you losing your home, having bailiffs at the door or, in rare cases, prison. Others are stressful and can hurt your credit score, but the consequences are slower and less severe. Knowing the difference between priority and non-priority debts helps you protect what matters most, even when money is tight.
This guide explains which debts come first, what can happen with each type, and exactly what to do this week. It’s part of my debt and credit UK guide.
Struggling right now? National Debtline (0808 808 4000, England and Wales) and StepChange (0800 138 1111) give free, confidential advice. You don’t need to have everything sorted before you call.
What is a priority debt?
A priority debt is one where not paying can lead to serious consequences: losing your home, having your energy supply affected, enforcement agents (bailiffs) taking your belongings, or court action. It’s about what can happen, not how big the debt is or how much interest it charges.
A £200 council tax arrear can be more urgent than a £3,000 credit card balance. That surprises a lot of people.
Priority debts in the UK
MoneyHelper lists these as priority debts:
| Priority debt | What can happen if you fall behind |
|---|---|
| Mortgage or loans secured on your home | Your lender can take court action to repossess your home |
| Rent | Your landlord can start eviction proceedings |
| Council tax (rates in Northern Ireland) | You can lose the right to pay in instalments, then face court, wage or benefit deductions and enforcement agents |
| Gas and electricity | Your supplier may move you to a prepayment meter or, as a last resort, disconnect you |
| Court fines | Enforcement agents, deductions from benefits or wages, and in serious cases prison |
| TV Licence | Prosecution and a fine |
| Child maintenance | Deductions from wages or bank accounts, and further enforcement |
| Income Tax, National Insurance and VAT owed to HMRC | HMRC can take money from your wages or bank account, or take court action |
| Hire purchase for something essential (such as a car you need for work) | The item can be taken back |
| Missed payments owed to DWP or HMRC (for example, benefit overpayments) | Deductions from benefits or wages |
Non-priority debts in the UK
These still need dealing with, but the consequences are usually less serious and happen more slowly:
- Credit cards and store cards
- Overdrafts
- Personal loans from banks, building societies or online lenders
- Catalogue, home credit and in-store credit
- Payday loans
- Buy Now, Pay Later
- Water and sewerage bills (water companies can’t cut off household supply)
- Money borrowed from friends or family
“Non-priority” doesn’t mean “ignore”. Falling behind can still lead to late fees, a default on your credit file, a County Court Judgment (CCJ) and eventually enforcement. The difference is that you usually have more time and more room to agree a reduced payment.
Why council tax is more urgent than most people think
Council tax is one of the most common priority debts, and it escalates quickly. According to GOV.UK, in England:
- Miss a payment and you get a reminder giving you 7 days to pay.
- Don’t pay within 7 days and you can lose the right to pay in instalments, so the whole year’s bill becomes due.
- The council can then ask a magistrate for a liability order, adding legal costs to your debt.
- After that, it can take money from your wages or benefits, or send enforcement agents.
The good news is that councils would much rather agree a plan. If you’re struggling, contact your council before you miss a payment. You can ask to spread your bill over 12 months instead of 10, and check whether you can get a discount or Council Tax Reduction. My council tax discount calculator shows what you might be entitled to.
What order should you pay your bills in?
When you can’t pay everything, use this order:
- Essentials to live: food, and travel to work if you need it to keep earning.
- Your home: rent or mortgage.
- Council tax.
- Gas and electricity.
- Other priority debts: court fines, TV Licence, child maintenance, HMRC, essential hire purchase.
- Non-priority debts: pay what you can afford, and contact each lender to explain.
If you can’t afford the full amount on a priority debt, pay something and contact the creditor straight away. A small payment and a phone call usually go much further than silence.
How to deal with non-priority debts when money is short
Once your priority bills are covered, share what’s left fairly between your non-priority creditors. Many debt advisers use a “pro rata” approach: each lender gets a share based on how much you owe them.
Example (illustrative figures): you have £150 a month spare and owe £3,000 on a credit card and £1,500 on a loan (£4,500 in total). The card is two-thirds of the total, so it gets £100; the loan gets £50.
Then:
- Write to or call each lender. Explain what’s happened and offer the amount you can afford.
- Show your budget. A simple income and spending list makes your offer more believable.
- Ask them to freeze interest and charges. Lenders are expected to treat customers in financial difficulty fairly.
- Get everything in writing.
If you’re behind on several non-priority debts at once, a free debt adviser can contact lenders for you or set up a free debt management plan.
What to do this week
- List every bill and debt and mark each one priority or non-priority. My Debt Payoff Progress Tracker has a page for this (it’s my own planner).
- Work out what you can afford after essentials. The 50/30/20 rule is a simple way to see where your money goes.
- Contact priority creditors first: landlord or lender, council, energy supplier.
- Check for help you might be missing, from benefits to the Warm Home Discount. See my free money help guide and Warm Home Discount guide.
- Get free advice if your income doesn’t cover your priority bills.
Help with energy debt
If you’re behind on gas or electricity, Ofgem says you can ask your supplier for a payment plan, a payment break or reduction, a review of your payments, or help from its hardship fund. If your supplier won’t help, you can complain. It’s also worth checking whether your monthly Direct Debit is set too high: my guide onwhat to do if your energy Direct Debit is too high explains how.
Breathing Space: temporary protection while you get help
In England and Wales, the Breathing Space scheme can give you up to 60 days’ protection from most creditor action, with most interest and charges frozen. You apply through a debt adviser. You still need to keep paying ongoing costs like rent, mortgage and energy during that time.
Priority debts: people also ask
What are the 5 main priority debts?
The most common priority debts are mortgage or rent, council tax, gas and electricity, court fines and child maintenance. TV Licence, tax owed to HMRC and essential hire purchase are also priority debts. They’re “priority” because falling behind can lead to losing your home, enforcement agents or court action.
Is a credit card a priority debt?
No. Credit cards are non-priority debts, even if the interest rate is high. You should still pay at least what you can afford and contact your card provider if you’re struggling, because missed payments can lead to fees, a default on your credit file and, eventually, a CCJ.
Is water a priority debt in the UK?
No. Water and sewerage bills are non-priority debts because water companies can’t cut off household supply. But unpaid water bills can still lead to court action. Ask your water company about payment plans and social tariffs if you’re struggling.
Is a parking fine a priority debt?
Council parking fines (Penalty Charge Notices) can be passed to enforcement agents if left unpaid, so treat them seriously. Private parking charges are generally non-priority debts. If you’re unsure, check with a free debt adviser.
Should I pay my credit card or my council tax first?
Council tax. It’s a priority debt, and missing payments can quickly make the whole year’s bill due, followed by court costs and enforcement. Pay what you can towards your credit card and contact the provider to explain.
What happens if I can’t pay my rent?
Contact your landlord as soon as possible and explain. If you rent privately, your landlord has to follow a legal process to evict you. If you’re on benefits, you may be able to get help with housing costs, and your council may offer Housing Payments through the Crisis and Resilience Fund in England, or Discretionary Housing Payments where available elsewhere. Get free advice early.
Can I get help with priority debts?
Yes. Free debt advice services can help you work out a budget, negotiate with creditors, apply for Breathing Space and check what support you’re entitled to. National Debtline, StepChange and Citizens Advice are all free and confidential.
Summary
- Priority debts (rent, mortgage, council tax, energy, court fines, TV Licence, child maintenance, HMRC) come first because the consequences are most serious.
- Non-priority debts (cards, loans, overdrafts, BNPL, water) still matter, but you usually have more room to agree a lower payment.
- Contact creditors early, starting with priority ones, and get free advice if you can’t cover the essentials.
Next step: read my step-by-step plan to get out of debt, 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 · GOV.UK: free debt advice · Ofgem: help if you can’t afford your energy bills · GOV.UK: Breathing Space guidance