The difference between priority and non-priority debts

17 April 2026

With so many types of debt, it can be hard to know which should be paid first. Understanding the difference between priority and non-priority debts helps you budget more effectively and stay in control of your money, according to PayPlan.

What are priority debts?

Priority debts are those that must be paid to avoid serious consequences - from losing access to essential services to facing legal action. That’s why these debts are called priority debts - they should always be paid first over other debts.

What happens if I don’t pay priority debts? The consequences depend on the type of debt and can include:

• Bailiff action - for example, if you don’t pay your council tax, gas and electricity bills.
• Disconnection of utilities - if gas or electricity bills remain unpaid.
• Losing your home - in the most serious cases, missed rent, mortgage or secured loan payments can result in eviction or repossession.
• Repossession of a vehicle on finance - if you fall into arrears.

What types of priority debts are there?

• Common priority debts include:
• Mortgage or rent arrears
• Council tax arrears
• Gas and electricity arrears
• HMRC
• TV licence fines
• Court fines or child maintenance
• Hire Purchase (HP)
• Personal Contract Purchase (PCP) or
• Lease Agreement arrears.

What are non-priority debts?

Non-priority debts are still important - but the consequences of missed payments are generally less severe. They don’t usually put your home or essential services at immediate risk.

What happens if I don’t pay non-priority debts?

If you fall behind on these, you could face:

• County Court Judgments (CCJs) – creditors may take legal action to recover what you owe
• Debt collection - your debt could be sold to another company that pursues repayment.
• Damage to your credit file - missed payments can lead to default notices and harm your credit rating.

What types of debt are non-priority?

Common non-priority debts include:

• Credit cards
• Personal loans
• Store cards or catalogue debts
• Overdrafts.

What this means for your budget

When managing your household budget, always make sure priority debts are covered first - they carry the most serious consequences if left unpaid. Once those are managed, focus on non-priority debts. Keeping up with minimum payments, where possible, can help prevent defaults while you explore longer-term solutions.

There to help

If you are struggling with debts call PayPlan on 0800 072 1206. PayPlan is open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit a dedicated website for West Midlands Police Federation members to speak to us via live chat or more information.

About PayPlan

PayPlan works with West Midlands Police Federation to provide free, comprehensive advice, guidance and support for anyone struggling with their finances. Its purpose is to help you take back control of your money.

Money worries are constantly on the minds of many, and the stress of having to cope with this – coupled with the effect it can have on work, family life, health and relationships – can be all-consuming.

Sharing these concerns with the people closest to you isn’t always an option for everyone, but ignoring these worries can make things worse.

PayPlan has more than 20 years’ experience helping people resolve their financial difficulties with free debt advice. Every year, it offers guidance on a wide range of debt solutions to more than 80,000 people who are struggling with debts.

Visit the PayPlan website or call 0800 009 4146 for free, confidential advice.

Get free debt advice

PayPlan offers free and confidential advice to find a solution that is tailored towards your needs. See PayPlan’s debt advice leaflet for more information.

PayPlan free downloadable documents

Moneywise – A quick guide to managing your money Assess what you owe - Instructions to set up your own income and expenditure statement

Debt solutions in brief – A simple guide to debt solutions

Preparing for a telephone consultation with PayPlan.

For more information and to contact PayPlan

PayPlan’s team of trained advisers understanding of your situation and always on hand to help you find a solution that fits your life. They will never tell you what to do, but they will offer you best advice, share their experience and help you every step of the way.

For free, confidential and impartial money advice, you can call PayPlan on 0800 009 4146 or visit the PayPlan website.