What is a priority debt?
Priority debts are the ones that are most important to pay. They
will not always be your biggest debts.
Priority debts include:
• Rent
• Tax
• Utility bills with your current supplier
(gas, electricity)
• Council Tax
• Magistrates' court fines
• Maintenance and child support
payments
• Essential items bought on hire purchase
(such as a car to get to work)
What is a non-priority debt?
Non-priority debts include:
• Door step lenders
• Credit and store cards
• Money owing to catalogues
• Bank overdrafts and loans
• Money owing to a previous energy
supplier
• Money borrowed from friends or
family
• Non-essential goods bought on hire
purchase
• Arrears from a former tenancy
Why do I need to know the difference?
It is more important to pay priority debts than it is to pay
non-priority debts. This is because the consequences of not paying
a priority debt are far more serious. For example;
• If you don't pay your rent you might
lose your home.
• If you don't pay Magistrates' court
fines, tax, or Council Tax a bailiff could come into your home and
take your goods, or you could go to prison.
• If you don't pay your current
utility bills, your gas and/or electricity could be cut off
Therefore, your most important debts will not necessarily be
your biggest debts. Even if you owe far more on a credit card than
on your rent, it is still more important to pay your rent so that
you keep a roof over your head.
Are the non-priority debts still important?
Yes. Although you may not lose your home, go to prison or have
your fuel or water cut off, you can still be taken to court .You
may have to pay court costs and if you don't pay your debts,
bailiffs may be given permission by the court to enter your home
and take your goods.
What about arrears from a former tenancy?
If you have former tenant arrears or other housing related
debt from a property you previously rented from Doncaster
Council or St Leger Homes of Doncaster, this could affect you
being able to rent a home from St Leger Homes in the future. Find
out more on our 'Former Tenant Arrears' page.
What should I do?
Please go to our 'Coping with debt' page to find out
more.