What’s the difference between priority and non-priority debts

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Not all debts carry the same consequences.
Understanding the difference helps you decide which payments must be made first, protect essential services, and keep control of your budget.

What are priority debts?

Priority debts are the bills that carry the most serious consequences if you fall behind.
Missing these payments can affect your access to essential services and lead to serious legal action, so they must be paid before any other debts.

What happens if priority debts aren’t paid?

Depending on the debt type, you could face:

Bailiff action – common for unpaid council tax or unpaid gas/electricity bills
Utility disconnection – gas or electricity may be cut off if arrears build up
Losing your home – missed rent, mortgage or secured loan payments can lead to eviction or repossession
Vehicle repossession – if you fall behind on car finance payments

Types of priority debts

Common examples include:

Mortgage or rent arrears
Council tax arrears
Gas and electricity arrears
HMRC debts
TV licence fines
Court fines or child maintenance arrears
Hire Purchase (HP), Personal Contract Purchase (PCP) or Lease Agreement arrears

What are non-priority debts?

Non-priority debts still matter, but they don’t usually put your home or essential services at immediate risk.
The consequences tend to be financial rather than physical.

What happens if non-priority debts aren’t paid?

If payments are missed, you might experience:

County Court Judgments (CCJs) – creditors can take legal action
Debt collection – your debt may be passed to or sold to a collection agency
Credit file damage – missed payments can lead to default notices and harm your credit rating

Types of non-priority debts

Common examples include:

Credit cards
Personal loans
Store cards or catalogue debts
Overdrafts

What this means for your household finances

When money is tight:

Make sure all priority debts are covered first – these have the most serious consequences.
Then focus on your non-priority debts – paying at least the minimum can help avoid defaults while you look at longer-term solutions.

This approach keeps you protected while helping you stay in control.

What’s the difference between priority and non-priority debts?