Households struggling to pay all their bills should prioritise debts that carry the most serious consequences, according to guidance from MoneyHelper, StepChange, and Citizens Advice. This approach focuses on protecting immediate wellbeing, home, and essential services when funds are limited.
Citizens Advice reported in March 2026 that the average debt for individuals it assisted reached a record £9,500. Of this, an average of 42% involved arrears on essential bills such as energy and Council Tax.
Before allocating money to creditors, it is important to ensure funds are available for basic needs like food, necessary medication, essential travel, childcare, and phone/internet connections required for employment or support. A regulated debt adviser can help create a realistic budget covering these essential living costs.
The suggested priority list begins with immediate court, eviction, or enforcement deadlines. This is followed by rent, mortgage, and secured housing payments, as continued arrears can put a home at risk. Council Tax, court fines, and urgent legal debts are next, as these can escalate to court or enforcement action. Child maintenance, tax, and certain government debts also have strong recovery powers.
Gas and electricity bills are considered a priority due to their essential nature, with prepayment customers facing immediate loss of service if they cannot top up. Essential hire purchase or car finance may be a priority if the item is genuinely necessary for work or disability. TV Licence, essential phone and broadband, and water bills follow, with credit cards, overdrafts, and other unsecured borrowing typically considered non-priority debts because they do not directly threaten a home or essential services.