Definition · Glossary
Priority debt
Debt & Debt Management
In plain English
Priority debts are debts where the consequences of not paying can be most serious — such as losing your home, having your energy supply cut off, or going to prison. These should generally be addressed before non-priority debts.
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Example
Rent arrears, council tax arrears and court fines are priority debts. Credit card debts and personal loans are generally non-priority debts.
Don't get caught out
Common misunderstandings
- Priority does not mean the debt is necessarily the largest — it refers to the severity of consequences for non-payment.