Priority and non-priority (credit debts)

Priority debts

These are debts that could result in serious action being taken against you, such as reposession of your home or loss of an essential supply, such as water.  These include:

Rent arrears, or arrears on payments for secure loans

• Council Tax
• Gas, electricity, and water charges
• Magistrate's Court fines
• Income tax, National Insurance, VAT
• TV licence
• Hire purchase/condition sale (this is different to 'buy now, pay later' schemes)

Non-priority (credit) debts

These are those where you owe money to creditors but they do not have the power to repossess your home or goods.  These include:

• Personal loans
• Credit cards
• Store cards and charge cards
• Catalogues and mail order
• Bank loans and overdrafts
• 'Buy now, Pay later' schemes

Some creditors may use aggressive tactics to get their money back, for example by sending debt collectors to your home.  But you should always pay back priority debts first.

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