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Lesson 2

Priority bills guide

When there is not enough money for everything, the safest order is not the loudest creditor. It is the bill with the worst consequence.

Housing firstRent or mortgage
Heat and powerEnergy risk
Council taxLegal consequences
Debt helpAct before arrears grow
Core idea

Priority means consequence, not moral importance

Citizens Advice explains that priority debts are debts that can cause particularly serious problems if you do nothing about them. This does not mean other debts are harmless. It means some missed payments can threaten your home, energy supply, essential goods, wages or legal position faster than others.

A credit-card company may write, charge interest or damage your credit file. That is serious. But rent arrears, mortgage arrears, council tax, court fines, current energy arrears and essential hire purchase can create more immediate harm. In a crisis, protect the roof, heat, food, work travel, essential communication and legal basics before trying to keep every lender happy.

Priority examples

What usually sits near the top

Housing

Rent or mortgage arrears can put the home at risk. Contact the landlord or lender early and keep notes.

Council tax

Council tax arrears can move into enforcement. Check Council Tax Reduction if income is low.

Gas and electricity

Current energy arrears matter because supply and repayment arrangements can be affected.

Court fines and legal debts

These can carry serious enforcement consequences. Do not ignore letters.

Script

If you cannot pay in full

Use boring, clear wording: "I cannot afford the full payment this month. I want to avoid the arrears getting worse. My income is X, essential bills are Y, and I can offer Z while I get advice. Please confirm hardship options, payment plans and whether any support scheme applies."

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Next steps

Sources

Sources and useful guidance