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What are priority debts
Priority debts can be a bit of a taboo for many people and understanding what qualifies as a priority debt and how a priority debt should be treated are often confused with other less important debts - whilst all debts are important some are more important than others. This article hopes to outline what a priority debt is, what qualifies as a priority debt and how they should be treated.
What are priority debts?
Priority debts are debts that must be paid before all other credit debts, not putting priority debts first could lead to court action, bailiff or even imprisonment depending on the debt.
Every creditor you owe money to will want their money before you pay anyone else - this is normal as they want to come first. unfortunately if the 
creditor wants to be put before a priority debt and you do actually pay that creditor instead of paying a priority debt, the priority debt creditor is likely to take further action and be less willing to work with you to help settle the debts.
What debt qualify as a priority debt?
Priority debts must be paid prior to paying any other debt, the following are what would generally qualify as priority debts.
- Gas, Electric and Water Rates
- Rent Arrears
- Mortgage or secured loan
- Child Support Agency Maintenance (ex-partner and children)
- Court Fines
- Vat, Income Tax, National Insurance
- Television Licence
- Hire Purchase Agreements
The list is in no particular order but it should be worth noting that for TV licence arrears and Child support agency arrears - they have the power to imprison you should payments not be made.
How should you treat these debts?
Priority debts should be considered just as important as general living costs as not paying them could impact on your standard of living greatly - especially if it is a debt that could lead to imprisonment. Other creditors not considered a priority debt should come second after your priority debts. It is always best to communicate with creditors and try to come to a solution and offer of repayment with any creditor you owe money too but this goes doubly so for priority debts.
If you are unable or unwilling to deal with the debts personally it is best to seek legal advice for priority debts if you are genuinely unable to pay them. If you are struggling to pay or to deal with your normal creditors and your priority debts then it may be worth talking to a debt management company or other debt help company who may be able to restructure your none priority debts to enable you to meet your commitments for your priority debts.
