Debt Solutions UK 2026 — DMPs, IVAs, DROs, Bankruptcy and Breathing SpacePriority vs Non-Priority Debts UK — What to Pay First
Which debts should you pay first? Understand the difference between priority and non-priority debts and the consequences of not paying each type.
When you can’t pay everything, knowing which debts come first protects you from the worst consequences. Here’s how to prioritise.
For the wider cluster covering DMPs, IVAs, DROs, bankruptcy, creditor protection and formal debt routes, use the main Debt Solutions UK hub.
The Two Types of Debt
Priority Debts
| What They Are | Consequences of Not Paying |
|---|
| Debts with serious consequences | Losing home, prison, disconnection |
| Must be paid first | When money is limited |
| Non-negotiable consequences | Even if you owe less |
Non-Priority Debts
| What They Are | Consequences of Not Paying |
|---|
| Debts with less severe consequences | Damaged credit, legal action |
| Pay after priorities | Once essentials covered |
| Still important | But not before rent/council tax |
Priority Debts Explained
Your Home
| Debt | Consequence |
|---|
| Rent arrears | Eviction |
| Mortgage arrears | Repossession |
| Secured loans | Repossession |
Utilities
| Debt | Consequence |
|---|
| Gas/electricity | Disconnection, prepayment meter |
| Water | Court action (cannot disconnect water) |
Government/Council
| Debt | Consequence |
|---|
| Council tax | Bailiffs, attachment of earnings, prison |
| Income tax | Bailiffs, court action |
| VAT | Bailiffs, court action |
| National Insurance | Court action |
Legal Obligations
| Debt | Consequence |
|---|
| Child maintenance | Attachment of earnings, prison |
| Court fines | Prison |
| Magistrates court fines | Bailiffs, prison |
| Compensation orders | Prison |
Other Priorities
| Debt | Consequence |
|---|
| TV licence | Prosecution, £1,000 fine |
| Hire purchase (car etc.) | Item repossessed |
Non-Priority Debts Explained
Common Non-Priority Debts
| Debt Type | Worst Consequence |
|---|
| Credit cards | CCJ, damaged credit |
| Personal loans | CCJ, damaged credit |
| Overdrafts | CCJ, damaged credit |
| Store cards | CCJ, damaged credit |
| Catalogue debts | CCJ, damaged credit |
| Payday loans | CCJ, damaged credit |
| Buy now pay later | CCJ, damaged credit |
| Money owed to family/friends | Relationship damage |
What Can Happen (Non-Priority)
| Stage | What Happens |
|---|
| 1 | Letters, phone calls |
| 2 | Default notice |
| 3 | Default registered (credit file) |
| 4 | Debt sold to collector |
| 5 | County Court Claim |
| 6 | CCJ issued |
| 7 | Enforcement (bailiffs, attachment of earnings) |
What Can’t Happen (Non-Priority)
| Cannot | Under non-priority debt |
|---|
| Lose your home | (Unless charging order on property) |
| Go to prison | It’s civil, not criminal |
| Have utilities cut off | Separate issue |
| Be physically forced | To pay |
The Payment Priority Order
Step 1: Essential Living Costs
| Pay First | Why |
|---|
| Food | You need to eat |
| Essential travel | Getting to work |
| Medication | Health essentials |
| Childcare | If needed for work |
Step 2: Priority Debts
| Pay Second | In This Order |
|---|
| 1. Rent/mortgage | Keep your home |
| 2. Council tax | Avoid bailiffs/prison |
| 3. Energy bills | Stay connected |
| 4. Child maintenance | Legal obligation |
| 5. Court fines | Avoid prison |
| 6. TV licence | Avoid prosecution |
Step 3: Non-Priority Debts
| Pay Third | Only After Above |
|---|
| Credit cards | If anything left |
| Loans | If anything left |
| Overdrafts | If anything left |
Consequences Comparison
Severity Scale
| Debt | Most Serious Consequence | Severity |
|---|
| Mortgage/rent | Lose home | ⚠️⚠️⚠️⚠️⚠️ |
| Council tax | Prison possible | ⚠️⚠️⚠️⚠️⚠️ |
| Child maintenance | Prison possible | ⚠️⚠️⚠️⚠️⚠️ |
| Court fines | Prison | ⚠️⚠️⚠️⚠️⚠️ |
| Energy bills | Disconnection | ⚠️⚠️⚠️⚠️ |
| HP/finance on car | Lose vehicle | ⚠️⚠️⚠️ |
| TV licence | £1,000 fine, criminal record | ⚠️⚠️⚠️ |
| Credit card | CCJ, credit damage | ⚠️⚠️ |
| Personal loan | CCJ, credit damage | ⚠️⚠️ |
| Overdraft | Account closure, CCJ | ⚠️⚠️ |
Timeline of Consequences
| Priority Debt | How Quickly Consequences Hit |
|---|
| Rent | Eviction process: 2-6 months |
| Mortgage | Repossession: 3-12 months |
| Council tax | Bailiffs: 2-3 months |
| Energy | Disconnection: 28 days notice |
| Non-Priority Debt | How Quickly Consequences Hit |
|---|
| Credit card | Default: 3-6 months |
| CCJ | 6-12 months from default |
| Bailiffs | After CCJ, weeks-months |
What to Do If You Can’t Pay
Priority Debts
| Action | Details |
|---|
| Contact immediately | As soon as you know you can’t pay |
| Explain situation | Temporary or ongoing |
| Ask for payment plan | Reduced payments |
| Get free advice | Citizens Advice, StepChange |
Non-Priority Debts
| Action | Details |
|---|
| Don’t ignore | Debt won’t disappear |
| Write to creditors | Explain situation |
| Offer token payments | £1/month if needed |
| Consider formal solutions | DMP, IVA, DRO, bankruptcy |
The Token Payment
| For Non-Priority Debts | When Appropriate |
|---|
| If nothing left after priorities | Genuinely |
| Amount | £1/month shows willing |
| Letter | Explain full situation |
| Review | When circumstances change |
Creating a Budget for Debt Priority
Budget Template
| Income | Monthly |
|---|
| Wages/salary | £_____ |
| Benefits | £_____ |
| Other income | £_____ |
| Total income | £_____ |
| Essential Spending | Monthly |
|---|
| Food/groceries | £_____ |
| Transport | £_____ |
| Childcare | £_____ |
| Essential phone | £_____ |
| Total essentials | £_____ |
| Priority Debts | Monthly |
|---|
| Rent/mortgage | £_____ |
| Council tax | £_____ |
| Energy | £_____ |
| Child maintenance | £_____ |
| Other priorities | £_____ |
| Total priorities | £_____ |
| Remaining After Priorities | Calculation |
|---|
| Income | £_____ |
| Minus essentials | -£_____ |
| Minus priorities | -£_____ |
| Left for non-priority | £_____ |
Special Situations
When Non-Priority Becomes Priority
| Situation | Becomes Priority |
|---|
| Bailiffs have visited | Already at enforcement |
| Charging order on home | Secured against property |
| Attachment of earnings | Court ordered |
| CCJ with liability order | Advanced enforcement |
If Creditors Won’t Accept Low Payments
| What They May Do | What You Can Do |
|---|
| Continue chasing | You can’t pay what you don’t have |
| Default your account | Shows financial difficulty |
| Take to court | Explain to judge in “means form” |
| Judge decides | Based on your actual means |
| Sign | Action |
|---|
| Can’t afford any priority payments | Debt charity immediately |
| Bailiff notices arriving | Urgent advice needed |
| Court papers received | Respond within deadline |
| Considering avoiding post | Don’t — seek help instead |
Getting Free Help
Free Debt Advice Services
| Organisation | Contact |
|---|
| StepChange | stepchange.org (0800 138 1111) |
| National Debtline | nationaldebtline.org (0808 808 4000) |
| Citizens Advice | citizensadvice.org.uk |
| PayPlan | payplan.com (0800 280 2816) |
What They Can Do
| Service | Details |
|---|
| Help prioritise | Sort debts into priority order |
| Negotiate | Contact creditors on your behalf |
| Set up DMP | Informal payment plan |
| Advise on solutions | IVA, DRO, bankruptcy if needed |
| Write letters | To creditors |
| Represent | At court hearings |
Summary: Priority Order
Always Pay First
| Priority | Debt |
|---|
| 1 | Rent/mortgage |
| 2 | Council tax |
| 3 | Energy bills |
| 4 | Child maintenance |
| 5 | Court fines |
| 6 | HP on essential items |
Pay After Priorities
| After | Non-Priority Debts |
|---|
| Only if left | Credit cards |
| Only if left | Loans |
| Only if left | Overdrafts |
| Only if left | Store cards |
Key Message
Missing a credit card payment damages your credit score. Missing rent can make you homeless. There’s no comparison — always pay priority debts first.
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