Published in partnership with PayPlan
With so many types of debt, it can be hard to know which should be paid first. Understanding the difference between priority and non-priority debts helps you budget more effectively and stay in control of your money.
What are priority debts?
Priority debts are those that must be paid to avoid serious consequences – from losing access to essential services to facing legal action.
That’s why these debts are called priority debts – they should always be paid first over other debts.
What happens if I don’t pay priority debts?
The consequences depend on the type of debt and can include:
- Bailiff action – for example, if you don’t pay your council tax, gas and electricity bills.
- Disconnection of utilities – if gas or electricity bills remain unpaid.
- Losing your home – in the most serious cases, missed rent, mortgage or secured loan payments can result in eviction or repossession.
- Repossession of a vehicle on finance – if you fall into arrears.
What types of priority debts are there?
Common priority debts include:
- Mortgage or rent arrears
- Council tax arrears
- Gas and electricity arrears
- HMRC
- TV licence fines
- Court fines or child maintenance
- Hire Purchase (HP), Personal Contract Purchase (PCP) or Lease Agreement arrears
What are non-priority debts?
Non-priority debts are still important – but the consequences of missed payments are generally less severe. They don’t usually put your home or essential services at immediate risk.
What happens if I don’t pay non-priority debts?
If you fall behind on these, you could face:
- County Court Judgments (CCJs) – creditors may take legal action to recover what you owe.
- Debt collection – your debt could be sold to another company that pursues repayment.
- Damage to your credit file – missed payments can lead to default notices and harm your credit rating.
What types of debt are non-priority?
Common non-priority debts include:
- Credit cards
- Personal loans
- Store cards or catalogue debts
- Overdrafts
What this means for your budget
When managing your household budget, always make sure priority debts are covered first – they carry the most serious consequences if left unpaid.
Once those are managed, focus on non-priority debts. Keeping up with minimum payments, where possible, can help prevent defaults while you explore longer-term solutions.
We’re here to help
If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.
Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or more information.