What are Priority Debts?
Sometimes the creditors shouting the loudest aren't always the ones you should pay first. Generally, priority debts are ones that have bad consequences for you when they're not paid, such as:
- Loss of home
- Loss of essential services
Make sure that you understand the difference between a priority debt & a non-priority debt. Take a look at the types of debts below & see which ones match your situation, You need to start prioritising these debts as soon as possible,
Priority Debt Examples
Maintain rent, mortgage and secured loan payments. Keeping the roof over your head is essential. If you have arrears with these creditors, negotiate repayments to clear them.
Essential Utility Services
Paying your utility bills for heating, lighting, water and phone, these are essential living costs. If you fall into arrears, stick to a a repayment plan to clear them.
Council tax is a bill that has to be paid by law so it's best to prioritise it in your budget. If you have arrears, these must usually be repaid over a short term, such as 12 months.
Magistrate Court Fines
Magistrate court fines i.e. parking or speeding fines must be repaid by law. You can ask the court for repayment terms if not already in place. Keep repayments up to date.
Hire Purchase & Log Book Loans
Hire purchase or log book loans for vehicles essential for travel must be kept up to date. You can often negotiate terms or hand the vehicle back, seek free debt advice first.
Child maintenance under a court order or Child Support Agency, must be paid. Arrears payments can be agreed with a re-calculation if circumstances have changed.
Request a Hold
Once you've identified your priority debts, try to pay them if you can or contact your creditors to request a hold while you seek urgent, free debt advice. Most creditors will give you time to sort out your financial difficulties, you can call them, email or write to them, but don't delay. If you need help putting a letter together, please use our template tool below.
Template Hold Letter
You can use our free template below to generate a hold request in a PDF format, this is automatically emailed to you. The completed letter can then be printed & posted or emailed to your creditor(s), don't forget to save a copy. Please note that some creditors will accept electronic signatures by email & some may ask for your formal signature. The data you add to the form is not stored or used by Money Advice Hub or any 3rd party.