You have £225 left this month and a pile of letters, and every one of them sounds urgent.
Short answer. Priority debts are the ones where the creditor can do the most damage the fastest: take your home, cut off your gas or electricity, send bailiffs or, in a few cases, ask a court to send you to prison. Credit cards, loans and catalogues are non-priority, so they wait. Free advice: StepChange on 0800 138 1111.
Based on StepChange: what debts to pay first and Citizens Advice: work out which debts to deal with first, checked October 2026. We cover England and Wales unless we say otherwise. Scotland and Northern Ireland use different rules and different names for court orders.
Priority is about what they can do to you
The word trips people up. A priority debt is not the biggest one or the one with the loudest collector. A credit card firm chasing £6,000 can ring all day, but it cannot switch off your electricity. A council chasing a few hundred pounds can take you to the magistrates court, and a landlord can start the process of evicting you.
So ask two questions about every letter. Can this creditor take my home, my energy or my freedom? Can it take money from me without waiting for a court? If the answer to either is yes, it goes near the top of the list.
The priority list, side by side
| Debt | What can happen if you stop paying |
|---|---|
| Rent | Eviction. A landlord must get a court possession order first. |
| Mortgage or secured loan (a loan tied to your home) | You could lose your home, again only after a court possession order. |
| Council tax | Magistrates court, bailiffs, money taken from your bank or benefits. Prison is possible in England only, and only if you can pay and refuse. |
| Gas and electricity | Supply cut off, a prepayment meter forced on you, or money taken from benefits. |
| Income tax, National Insurance, VAT | Money taken from wages, bailiffs or a bankruptcy application. HMRC does not need a court order first but must warn you. |
| Overpaid tax credits | HMRC can take money from wages, benefits or tax credits, or use bailiffs, after a warning. |
| Child maintenance | Money taken from wages or your bank, then a driving licence or passport ban of up to 2 years or prison if you can pay and refuse. |
| Court fines, including a TV licence fine | Bailiffs, money taken from your bank or benefits, and prison if you can pay and refuse. |
| Hire purchase or logbook loan | The goods can be taken back. These count as priority for items you really need, such as a car you need for work. |
| County Court judgment (CCJ) | Bailiffs, a charging order on your home, money taken from wages or bank. StepChange lists a CCJ as priority. |
Two of those rows are easy to miss. HMRC can act without a court. And a debt that starts as non-priority, like a credit card, can become priority the day a court judgment lands. If you have had court papers, our guide to your rights with debt collectors and bailiffs shows what they can and cannot do.
What can wait, and what still cannot be ignored
Citizens Advice lists these as non-priority: credit cards, store cards, catalogue accounts and unsecured loans (loans not tied to your home), including payday loans; unpaid water bills; benefit overpayments other than tax credits; parking charge notices; and money owed to family and friends.
Non-priority does not mean no risk. Those creditors can still take you to court. It means they cannot do the fast, severe things first. Paying only the minimum on a card also keeps the balance alive for years, which our Minimum Payment Trap Calculator shows with your own numbers.
Where the two charities disagree
Both are free and both agree on the big ones. They differ on the edges, and it is worth knowing before you decide.
Phone and internet: StepChange lists a phone as priority. Citizens Advice says it is priority only if you really need it, for example because of a disability or health condition, for work or for job-hunting, and tells you to say so to the supplier.
Water: Citizens Advice says water is non-priority and the supplier cannot cut you off. StepChange names water as priority in its introduction but gives consequences only for Northern Ireland. If you are unsure, ask an adviser which applies where you live.
A worked example: £1,500 a month
This is our own illustration, not a real case. Take-home pay is £1,500. Rent is £650, council tax £120, gas and electricity £110, food £260, travel to work £110 and a phone £25. That is £1275 of essentials, which leaves £225.
The minimum payments on the non-priority debts add up to £315.
| Non-priority debt | Minimum asked | Share of the £225 (our illustration) |
|---|---|---|
| Credit card | £95 | £67.86 |
| Personal loan | £150 | £107.14 |
| Catalogue account | £70 | £50.00 |
| Total | £315 | £225 |
The rent, council tax and energy come out first, because losing the flat or the power costs far more than a late card payment. What is left is split in proportion to what each creditor asks, which is £225 against £315, or about 71%. A creditor does not have to accept this, so write to each one with your budget, as StepChange suggests, and ask for free advice before you commit.
If you cannot cover even the priority ones
Do not wait for the arrears to grow. StepChange says most creditors will work with you if you tell them you are struggling, and a free adviser can build the budget you show them. If the debts are out of reach, the Bankruptcy and DRO Checker shows which formal options might fit, and Breathing Space can pause most creditor action while you get help. Council tax and energy have their own guides: council tax debt and utility bill debt.
Questions at 2am
Is a credit card a priority debt?
No. Credit cards, store cards, catalogue accounts and loans, including payday loans, are non-priority. The lender can still take you to court. If it wins a County Court judgment, StepChange lists that judgment as a priority debt in England and Wales.
Can I go to prison for not paying council tax?
In England it is possible, but only if you can pay and refuse. Citizens Advice says you will not go to prison if you can show you cannot pay. StepChange says prison for council tax arrears applies in England and not in Wales.
Do I have to pay my water bill before my credit card?
Citizens Advice puts unpaid water bills in the non-priority group and says the supplier cannot cut off your water. StepChange names water as priority in its introduction but lists consequences for it only in Northern Ireland. If in doubt, ask a free adviser.
What if I cannot pay anything this month?
Ring StepChange on 0800 138 1111 before the arrears grow. StepChange says most creditors will work with you if you tell them you are struggling, and the budget you build with an adviser is what you show them.
Is the TV licence a priority debt?
Both StepChange and Citizens Advice list it. The result of not paying is a fine, and an unpaid fine can go to the magistrates court.
More UK help: UK debt help hub.
Disclaimer: DebtShift is an educational platform operated by H Ali Logistics Ltd, which is not authorised or regulated by the Financial Conduct Authority (FCA). This article is general education, not financial or legal advice. For free, impartial debt advice, contact StepChange on 0800 138 1111.
Sources
Last reviewed October 2026
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