What bills to pay first when you’re in debt

What to pay first

When you are struggling to make payments on all your bills it is difficult to know what to pay first.

Some bills are classed as priorities. This is because the consequences of not paying these bills are greater than the consequences of not paying others. For example, if you do not pay your rent or your mortgage you could lose your home.

These bills are your priorities and you must always pay these before your other creditors.


Type of payment		Consequence of not paying
Mortgage		Losing your home
Rent		Losing your home
Secured loans		Losing your home
Council tax		A visit from the bailiffs, an attachment of earnings order or imprisonment
Child maintenance		An attachment of earnings order or imprisonment
TV licence		A fine or imprisonment
Magistrates’ Court fines		A visit from the bailiffs or imprisonment
Tax, VAT or National Insurance		A visit from the bailiffs, an attachment of earnings order or a charging order or bankruptcy
County Court Judgments		A visit from the bailiffs, an attachment of earnings order or a charging order
Gas, electricity or other fuel		Disconnection or a pre-payment meter
Hire Purchase		Losing your goods
Telephone		Disconnection

If you are worried because you have missed payments for your priorities please call our Helpline on 0800 138 1111. Our specialist advisors will be able to help you catch up with payments and deal with any arrears you have. For more free debt advice visit CCCS Debt Remedy, our online debt counselling service.

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FAQs

Are my unsecured debts a priority?

This depends on your situation. You should always pay your unsecured debts if you can afford to. However, paying for your house, utility bills and council tax is normally more important than paying for unsecured debts. This is because the consequence of not paying your priorities is more severe than not paying your unsecured debts. If you are struggling to pay any of your debts please call us. One of our advisors will be able to help you deal with your problems.

Why is council tax a priority?

Council tax is a priority because it is a criminal offence not to pay it. If you don’t pay your council tax you will be asked to attend a court hearing at the magistrates’ court. The courts could send bailiffs to your house or have money taken out of your wages (an attachment of earnings). If you refuse to pay council tax you could be sent to prison.