Which bills are most important to pay first?
There are some bills that have to be paid which are more important than others. If these payments are not made you will find yourself at risk of losing something important. For example, if rent isn't paid there is a risk of eviction, or if the electricity isn't paid there is a risk of disconnection. These payments are called ‘priority payments’.
Here are some further examples:
|
Priority payment |
Consequence of not paying |
|
Mortgage or secured loan |
Repossession of the property |
|
Rent |
Evicted from the property |
|
Council tax |
Liability Order leading to an Attachment of Earnings, Deduction from benefits, Enforcement Agent taking seizing goods or imprisonment |
|
Gas or electricity bill |
Disconnection of your gas or electricity |
|
Court fees and fines |
Imprisonment |
|
Child maintenance |
Imprisonment or disqualification from driving if you refuse to pay |
|
Hire purchase |
Repossession of your hire purchase goods |
|
Television licence |
Court fees and fines |
Payments to credit cards, unsecured loans, catalogues, overdrafts and store cards are not seen as priority payments.
Payments to credit cards, unsecured loans, catalogues, overdrafts and store cards are not seen as priority payments. Missing payments to these can affect your credit rating, which would make it harder to get credit in the future. However, there is no immediate risk of losing something if these debts are not paid.
If someone else is dealing with your money for you, it is important they make sure your priority bills are paid before paying any other debts. If you don’t have enough money to pay your important bills or the minimum payments to your debts you should seek advice from a money adviser.
