Prioritising Debt
Get on top of your finances
It's not surprising many of us find ourselves falling into debt. Life is expensive. If you are struggling to pay for everything, it’s important to get your priorities straight. But when it comes to bills, if you’re not sure which ones to pay first, you need to sort them into two piles: priority and non-priority. Debts are either priority or non-priority depending on the penalties that can be imposed if you do not pay. If you are struggling to pay all your debts always make sure you pay your priority debts first.
If your rent is not paid, the money owed is called 'rent arrears'. Rent arrears are 'priority debts', which means the consequences of not dealing with them are serious - there is a risk of eviction. If you can't pay your rent, you have missed rent payments or you're worried your payments are not being made, please call us on 0800 7839295. Even if you have other debts, make sure you prioritise rent arrears.
Never be pressured into paying non-priority debts before priority debts, even if the collectors call at your home.
Seek advice immediately if you feel you are being bullied or harassed.
Priority Debts
|
Priority Debts |
Consequences |
|
Rent or mortgage |
You could lose your home |
|
Electricity, gas, |
You could be cut off |
|
Council tax |
A bailiff could take your belongings |
|
TV licence |
You could have money taken from your benefit or wages |
|
Maintenance including |
A bailiff could take your belongings |
|
County Court fines |
You could go to prison |
Non-Priority Debts
|
Non-priority debts |
Consequences |
|
Catalogue |
You could be taken to county court and receive a County Court Judgement. If you own your own property you could receive a Charging Order. However, you cannot be imprisoned and rarely lose your home |
If you're on a low income, or having financial problems, check if you qualify for any benefits - such as Housing Benefit, Council Tax Benefit or tax credits. You don't have to be out of work to claim benefits and you could qualify for more than one. Please see our Housing Benefit page for further information.
For more tips and a free personal budget planner, download our information pack: 'Money,Money, Money'
Useful Sites for Debt Advice:
Benefits adviser - The benefits adviser is an online questionnaire to help you find out which benefits and tax credits you and your family may be entitled to, and if you are entitled to the State Pension.
Citizens Advice Bureau - The Citizens Advice service helps people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers
National Debtline - Free, confidential and independent advice on how to deal with debt problems.
Now Let's Talk Money - a government campaign to help boost the financial security of people who have money worries.
