Priority and non priority debts
Some debts are more important than others. Knowing which debts should take priority can help you to keep your home.
Priority debts
Some debts are called priority debts because there are more serious consequences if you don't pay them.
Priority debts include:
rent arrears
mortgage and secured loan arrears
gas and electricity debts
council tax
If you don't pay
You could lose your home if you can't pay off rent or mortgage arrears.
You could be disconnected if you can't pay gas or electricity debts.
Or you could be moved to a prepayment meter which costs more.
You should always deal with priority debts before non priority debts.
Non-priority debts
Non-priority debts include:
credit card debts
payday loans
catalogues
water bills
unsecured bank loans
If you don't pay
There are less serious consequences if you can't pay these debts.
They still affect your credit rating and you could still face legal action if you don't deal with them.
A non priority debt can become a priority if you're a homeowner and a county court judgment (CCJ) is made against you. The company or person you owe money to might apply for a charging order which could put your home at risk.
Get help with debt problems
A specialist debt adviser could help you to:
claim benefits
manage your money
prioritise your debts
draw up a financial statement
negotiate with lenders and other creditors
Find out where to get help with debts
Last updated: 18 December 2019
