Priority debts are those debts that can't be delayed. Usually, this means that if you default on a priority debt payment, you could face considerable pressure from your creditors.
Priority debts are generally:
- Mortgages or rent
- Council taxes
- Gas, electricity and water bills
- Maintenance or child support
It's important to deal with your priority debts first; otherwise you could face losing your home, having your amenities cut off or even going to prison. Serious actions can be taken against you if you fail to pay priority debts.
Dealing with non-priority debts
The largest debts aren't always the most important - so it's important to be able to separate your priority debts from your non-priority debts. While non-priority debts can be burdensome, they should not be paid off before priority debts.
Non-priority debts can include:
Priority debts should be considered more important debts than others because if you don't pay them on time, consequences can be quite serious.
Payment plans can often be arranged with creditors to pay priority debts as well as arrears accumulated on priority debts.
For help with managing your non-priority debts, seek advice from a debt counsellor, who can help you with a range of measures which will include creating a personal budget.
More on debt from Legal Advice Helpline
At Legal Advice Helpline, our Debt Help partners are among the UK's most reputable accountancy firms who are recognised specialists in consumer debt management and restructuring. Legal Advice Helpline can help you prioritise your debt to help make your debt seem manageable.
For more information, call Legal Advice Helpline free on 0800 612 3042.