When money is tight, and bills are piling up, it can be hard to know which debts to pay first. The truth is, not all debts are equal — and prioritising your payments correctly can protect your home, utilities, and mental health during difficult financial times.

Whether you’ve recently lost income, faced unexpected expenses, or are struggling with the rising cost of living, this guide will help you understand how to prioritise debt repayments in the UK and what support is available.

Why Prioritising Your Debts Matters

If you can’t afford to pay everything, the most important thing you can do is decide what must be paid now, what can wait, and what you need help with. Poor prioritisation can lead to:

  • Losing your home

  • Disconnection of gas or electricity

  • Legal action or fines

  • Bailiff visits

On the other hand, tackling the most urgent debts first can help stabilise your situation and give you space to breathe.

Step 1: Understand the Difference Between Priority and Non-Priority Debts

Priority debts are those with the most serious consequences if unpaid. These don’t always have the highest interest rates — but they can lead to court action, eviction, or disconnection.

Priority Debts Include:

  • Rent arrears – risk of eviction

  • Mortgage arrears – risk of repossession

  • Council tax arrears – enforcement agents can be sent

  • Gas and electricity – risk of being cut off

  • Court fines – risk of bailiffs or imprisonment

  • TV licence – legal action if unpaid

  • Child maintenance – deducted from wages or benefits

Non-Priority Debts Include:

  • Credit cards

  • Store cards

  • Personal loans

  • Catalogue debts

  • Overdrafts

  • Buy now, pay later

  • Friends or family loans

These are still important, but the consequences of missing a payment are usually financial, not legal or physical.

Step 2: Pay for Essentials First

Before paying any debts, cover basic living costs:

  • Rent or mortgage

  • Council tax

  • Utilities (gas, electric, water)

  • Food and groceries

  • Travel for work

  • Childcare

  • Insurance for your home or car (if needed for work)

This ensures you’re not putting yourself at greater risk while repaying debt.

Step 3: Create a Debt Prioritisation Checklist

Here’s a simple way to organise your payments:

Debt Type

Urgency

Action Needed

Rent arrears

High

Contact landlord, set up plan

Council tax

High

Speak to council, request help

Credit card

Medium

Minimum payment or negotiate

Payday loan

Medium

Can often be frozen/paused

Mobile contract

Low

May be cancelled if unpaid

You can use our Debt Payoff Calculator to enter your debts and see a repayment strategy based on your situation.

Step 4: Contact Creditors Early

If you know you can’t pay a debt this month, don’t ignore it. Contact the creditor as soon as possible to explain your situation. Many will offer:

  • Payment holidays

  • Lower minimum payments

  • A temporary freeze on interest or charges

This applies to credit cards, personal loans, and even some utility providers.

You can also ask for help from StepChange, National Debtline, or Citizens Advice — all offer free guidance.

Step 5: Consider a Debt Management Plan (DMP)

If you have multiple non-priority debts you can’t afford to repay, a DMP can help you combine them into a single monthly payment based on what you can afford.

  • You’ll make one payment each month

  • Interest and charges are often frozen

  • Creditors are contacted on your behalf

Speak to a free provider like StepChange if you want to explore this option.

Step 6: Avoid These Common Mistakes

When struggling financially, many people panic — but some quick decisions can actually make things worse. Watch out for:

❌ Taking out more credit to pay off debt

This only delays the problem and can make things harder later.

❌ Ignoring priority bills to pay credit cards

Missing a rent or council tax payment is far more serious than missing a store card.

❌ Paying whoever shouts the loudest

Debt collectors may seem intimidating, but they don’t have more power than a landlord or court.

Always prioritise based on consequences — not who is chasing you the hardest.

Step 7: Use Tools to Track and Plan

Keeping all your debts in one place helps reduce anxiety and makes it easier to plan.

Use our free Debt Payoff Calculator to:

  • List all your debts

  • View total repayments

  • Compare snowball vs avalanche strategies

  • Set a realistic timeline based on your budget

This gives you a sense of progress — even when times are tough.

Final Thoughts: Focus on Stability First

In hard times, your first goal should be financial stability, not becoming completely debt-free overnight.

Paying off debt is a marathon, not a sprint. Prioritise the essentials, protect your home and health, and deal with each debt in order of seriousness. There is help available, and you don’t have to face it alone.

Take action early, get advice if you need it, and remember — progress is progress, no matter how small.