Which Bills Should I Pay First When Money Is Tight?
When you cannot pay everything, pay the bills with the most serious consequences first. These are called priority bills. Paying them first protects your home and your energy supply, and stops the most serious action being taken against you. A free debt adviser can help you make a plan.
If there is not enough money to cover every bill, it is hard to know what to pay first. The key idea is simple: some bills are more urgent than others, because of what happens if you do not pay them.
What are priority bills?
Priority bills are the ones where not paying has the most serious consequences, like losing your home or having your energy cut off. Pay these first:
rent or mortgage (you could lose your home)
Council Tax (the council can take court action)
gas and electricity (your supply could be at risk)
court fines and child maintenance
income tax and similar bills
What are non-priority bills?
Non-priority bills still matter and should not be ignored, but the consequences of falling behind are usually less severe. These include:
credit cards and store cards
personal loans and overdrafts
catalogue and 'buy now, pay later' debts
payday loans
money borrowed from friends or family
Why pay priority bills first?
It can feel wrong to leave a credit card unpaid while a company chases you. But the lender behind a credit card cannot take your home or cut off your heating. Falling behind on rent, Council Tax or energy can lead to much more serious action, so those come first.
What if I can't afford my priority bills either?
If even your priority bills are out of reach, do not go quiet. Contact each company and ask to pay what you can afford, they have to work with you. Get a benefits check to make sure you are claiming everything, and get free debt advice to make a plan. You can also ask about Breathing Space, which can pause interest and action while you get advice.
Where to get help
A free debt adviser can help you sort your bills into the right order and set up payments you can afford, without judgement.
Organisations such as Hope 4U may be able to help. Eligibility is based on available location funding.
Questions people often ask
Which bills should I pay first?
Pay priority bills first: rent or mortgage, Council Tax, gas and electricity, court fines, child maintenance and tax. These have the most serious consequences if you do not pay them.
What is a priority debt?
A priority debt is one where not paying can lead to serious consequences, such as losing your home, having your energy cut off, or court action. They should be paid before non-priority debts like credit cards and loans.
Should I pay my credit card or my rent first?
Rent comes first. Falling behind on rent can put your home at risk, while a credit card provider cannot take your home. Pay priority bills like rent, Council Tax and energy before non-priority debts.
Where can I get help?
A free debt adviser can help you work out what to pay first and set up affordable payments. Organisations such as Hope 4U may be able to help. Eligibility is based on available funding.
This is general information and not debt advice for your specific situation. A free debt adviser can look at your circumstances and help you make a plan.
