Which bills to pay first when money is tight

What makes a debt a priority

MoneyHelper, the free government-backed money service, describes priority debts as the ones that carry the most serious consequences if you do not pay them. That is not the same as the largest debt, or the one with the highest interest.

The difference comes down to what the people you owe can do. National Debtline explains that creditors collecting priority debts have stronger powers to recover the money than other creditors. Some debts can be priority or non-priority depending on your circumstances, which is one reason free advice is worth getting.

Debts that usually come first

MoneyHelper lists these as priority debts:

• mortgage, rent and any loans secured against your home
• Council Tax or Rates
• gas and electricity bills
• court fines
• child maintenance
• Income Tax, National Insurance and VAT
• your TV Licence
• hire purchase agreements, if what you are buying with them is essential
• missed payments owed to the DWP or HMRC

Citizens Advice explains why some of these matter so much. Your council might take you to the magistrates’ court over unpaid council tax, and a landlord might evict you over rent arrears. Falling behind on priority debts can also lead to bailiffs, a court summons or your gas and electricity being cut off.

Debts that can usually come after

MoneyHelper gives these as examples of non-priority debts:

• overdrafts, personal loans and bank or building society loans
• credit card and store card debts, and payday loans
• catalogue, home credit and in-store credit debts
• money borrowed from friends or family
• water and sewerage bills

Non-priority does not mean you can ignore them. The consequences are less serious, but a creditor could eventually take you to court or instruct bailiffs. The point is to keep a roof over your head and the lights on first, then deal with the rest, ideally with an adviser’s help.

Water bills

Your water supply cannot be cut off because you have not paid, which is why Citizens Advice lists water debts as non-priority. MoneyHelper still suggests treating water and sewerage as an essential household bill and considering it alongside your priority bills, before other non-priority debts.

If you are facing court, bailiffs or eviction

MoneyHelper says to get free, independent debt advice urgently if you are facing court action, bailiff action, disconnection, or eviction for mortgage or rent arrears. A free adviser can look at your whole situation and explain your options. The organisations listed at the end of this guide do not charge.

What your lenders have to do

If you owe money to a lender regulated by the Financial Conduct Authority, you have protection. The FCA’s rules say a lender must treat customers who are in or approaching arrears with forbearance and due consideration, taking into account their individual circumstances.

In practice that can include suspending, reducing, waiving or cancelling further interest or charges. If you agree a repayment arrangement and stick to it, the lender must reduce, waive or cancel interest and charges as needed so the debt does not keep rising during that arrangement.

A lender also must not pressure you to pay within an unreasonably short time, or to raise the money by selling your property or by borrowing more. The same rules describe priority debts and essential living expenses as including payments for mortgage, rent, council tax, food and utility bills.

Watch out for paid debt firms

The FCA says free debt advice is available to everyone. It has warned that some people are steered towards fee-paying debt solutions that may not suit them. One red flag is being pressured to agree to a debt solution quickly over the phone or on WhatsApp.

Before you agree anything, use the FCA’s Firm Checker to confirm a firm is authorised and that its contact details match. StepChange also warns that some clone firms advertise online using its name, so go to the charity’s own website directly.

Common questions

Is a payday loan a priority debt?

No. MoneyHelper lists payday loans, credit and store cards, personal loans, overdrafts and catalogue or home credit debts as non-priority debts. They still need dealing with, but after the bills where the consequences of falling behind are more serious.

Can my water be cut off if I cannot pay?

No. Your supplier cannot cut off your water supply for non-payment, which is why Citizens Advice treats water debt as non-priority. MoneyHelper still suggests treating it as an essential bill alongside your priority bills.

Can a lender pressure me to borrow more to pay them back?

No. Under the FCA’s rules, a regulated lender must not pressure you to raise money to repay a debt by borrowing money, increasing existing borrowing or selling your property.

Should I pay a company to help with my debts?

You do not need to. The FCA says free debt advice is available to everyone, and it warns that some people are steered towards fee-paying solutions that may not suit them. Start with one of the free services listed on this page.

Sources

Every fact in this page was checked against these official sources on 28 October 2026.

1. How to prioritise your debts MoneyHelper
2. Work out which debts to deal with first Citizens Advice
3. How to manage debt: a step-by-step plan National Debtline
4. CONC 7.3: Treatment of customers in default or arrears Financial Conduct Authority Handbook
5. Debt advice warning: spot the red flags Financial Conduct Authority

Written and fact-checked by the PiggyBank editorial team. Last reviewed 28 October 2026. This guide is general information, not financial advice. How we write and check our guides.