What debts should I prioritise paying first?

When managing problem debt, it is essential to distinguish between priority and non-priority debts. Priority debts are those where the consequences of non-payment are most severe and immediate. They should be paid first, ahead of non-priority debts. The main priority debts are: mortgage or rent arrears (non-payment can lead to repossession or eviction); council tax arrears (councils can obtain a liability order and use bailiffs to collect, and in rare cases may pursue committal proceedings); gas and electricity arrears (utilities can be disconnected, though there are strict rules protecting vulnerable customers); magistrates' court fines (non-payment can result in further enforcement or committal); income tax, national insurance, and VAT owed to HMRC (HMRC has wide powers of enforcement and can make people bankrupt); hire purchase agreements on essential items; television licence; and child maintenance arrears enforced by the Child Maintenance Service. Non-priority debts — such as credit cards, unsecured personal loans, store cards, and catalogue debts — have fewer immediate enforcement powers available to creditors and are therefore lower priority. If you cannot pay all your debts, you should contact a free debt advice service such as Citizens Advice, StepChange, National Debtline, or PayPlan. These organisations can help you create a debt repayment plan that prioritises correctly and negotiations with creditors.