Priority debts and what debts to pay off first

This page can help people looking for information about priority debts. This details the debts that you should pay first and what is classed as a priority debt. 

Priority debts are those which, if left neglected, could have a major affect on your family, personal and financial affairs.

Priority debts are not arrears which involve bailiffs, high frequency of letters and persistent phone calls. These are debts which will have a critical impact if any services they pay for stop essential items like water, heating and keeping a roof over your head. They are also classed as a priority if they stop criminal proceedings against you.

The list below details the facts on priority debts and why they should be dealt with before other creditors.

Mortgages, rent and loans secured on the home

Missing or not making payments  on a mortgage or a loan which is secured on the home may lead to repossession. Failure to keep up with rental payments could lead to eviction proceedings from your landlord.

Council Tax debts

In relation to  unpaid council tax the council can appoint bailiffs to collect any outstanding arrears, deduct payments directly from income (such as wages or benefits), or start legal proceedings against you.

Gas or Electricity debts

An electricity or gas company can cut your supply off should you not pay their  bills.

Income Tax, VAT and National Insurance debts

These are also classed as Priority debts.

What about non-priority debts?

While the above is a typical list of priority debts, your other debts should still be addressed. As ignoring these, or any debt, can lead to adverse implications on your credit rating or bankruptcy.

How we help you with Priority debts

In every scenario, as this differs from a case by case basis, we would need to review your current financial arrangements to make sure that we are giving you the most relevant and appropriate advice. We can do this on a call or if you would prefer by appointment at our office which is based in Manchester.