Differences between priority and non-priority debts
If you are dealing with debt, it helps to understand which debts are most urgent. Priority debts can lead to losing your home, essential services, or even prison if left unpaid. We can help you work out what to pay first.
Understanding your debts
If you owe money in several places, it can be hard to know where to start. Not all debts are equal. Some carry more serious consequences than others, and knowing the difference can help you take control.
Priority debts (pay these first)
Priority debts are debts where the consequences of not paying are the most serious. If you do not pay, you could lose your home, lose essential services, or in some cases face imprisonment.
Examples of priority debts include:
- Rent or mortgage arrears
- Council Tax arrears
- Gas and electricity bills (with your current supplier)
- Court fines, including magistrates' court fines
- Child maintenance payments
- Debts to HM Revenue and Customs (HMRC) (such as income tax or VAT)
Non-priority debts (pay after priority debts)
Non-priority debts are still real debts, but the consequences of not paying are less severe. Creditors must obtain a county court judgment (CCJ) before they can take serious action, such as seizing goods. There is no risk of losing your home, essential services, or imprisonment.
Examples of non-priority debts include:
- Credit cards
- Bank loans (unsecured)
- Overdrafts
- Store cards and catalogue debt
- Payday loans
- Money owed to friends and family
What you should do
If you are struggling with debts, the most important thing is not to ignore them. Start by making sure your priority debts are covered, and contact us for help with working out a plan.
You can also find more about priority and non-priority debt on the MoneyHelper website.
Get help
Dealing with debt can feel overwhelming, especially when you are not sure what to pay first. You do not have to work it out alone.
- Email us at info@youthlegal.org.uk
- Call us on 020 3195 1906
- Fill in our [contact form](/contact-us) and we will get back to you
All our advice is free and confidential.