Table Of Contents
- Why Some Debts Should Come First
- What Counts As A Priority Debt?
- What Are Non-Priority Debts?
- How To Work Out What You Can Afford
- What To Do If You Can’t Pay Everything
If money’s not stretching far enough, it can be hard to know which bills to pay first. Some debts feel urgent. Others keep piling up quietly in the background. And in the middle of it all, you’re just trying to stay afloat.
The good news is, there’s a way to bring some order to the chaos. By understanding which debts carry the most risk, you can focus your energy where it matters most and take steps to protect yourself, even when things feel tight.
In this blog, we will walk you through how to prioritise your debts, what to pay first, and what to do if there’s not enough to go around.
Why Some Debts Should Come First
When money is tight, it’s easy to feel like every bill is urgent. But in reality, some debts carry more serious consequences than others. These are known as priority debts, and they should always be dealt with first.
Priority debts are the ones that could put your home, your essential services, or your legal standing at risk if left unpaid. Getting on top of these can help you avoid further stress and give you a clearer foundation to deal with everything else.
What Counts As A Priority Debt?
Priority debts are the ones that could lead to serious consequences like eviction, court action or disconnection. These usually include:
- Rent or mortgage arrears
- Council tax debt
- Gas and electricity bills
- Court fines or County Court Judgments (CCJs)
- Child maintenance
- TV licence arrears
- Income tax or National Insurance owed to HMRC
If you’re behind on any of these, it’s important to get in touch with the provider or authority as soon as possible. In many cases, they’ll be willing to set up a payment plan that works with your situation.
What Are Non-Priority Debts?
Non-priority debts can still affect your finances, but they usually won’t lead to immediate legal action or loss of essential services. These might include:
- Credit cards and overdrafts
- Store cards and catalogue accounts
- Personal loans
- Buy Now, Pay Later agreements
- Water bills (you can’t be disconnected, but arrears can still be chased)
While it’s important not to ignore these, you should only start repaying them once your priority debts and essential living costs are covered.
How To Work Out What You Can Afford
Before you can start paying anything back, you need a clear view of what’s coming in and going out. It’s not always easy to face, but taking stock of your situation is the first step to making a plan that works.
Start by listing:
- Your total monthly income (wages, benefits, pensions etc.)
- Your essential living costs (rent or mortgage, food, energy, travel)
- What’s left over for debts and other payments
This is sometimes called an income and expenditure breakdown. It shows you what’s genuinely affordable and helps you avoid committing to repayments you can’t keep up with. There are free budgeting tools online, or you can speak to a debt advisor who can walk you through it.
What To Do If You Can’t Pay Everything
If there isn’t enough money to go around, even after prioritising and budgeting, don’t panic. You’re not alone, and there is support available.
First, focus on your priority debts. You may be able to agree to temporary payment plans, ask for a hold on interest or charges, or request Breathing Space, a government-backed scheme that gives you time to get advice without pressure from creditors.
If your income doesn’t cover both essentials and debt repayments, you might need to consider a formal debt solution like a Debt Management Plan (DMP), IVA or other option. A qualified debt advisor can explain what’s available and help you choose the right path.
Speak To PennyPlan For Free Debt Advice
When you’re behind on bills and don’t know what to pay first, it’s easy to feel overwhelmed. But with the right support, it gets easier to see the way forward.
At PennyPlan, we offer clear, confidential advice to help you understand your options, prioritise your debts, and build a plan that fits your budget. We’ll guide you step by step; no pressure, no judgment, just support that makes sense.
Ready to take the next step? Get in touch today.
