Priority debts are the debts that you must pay regardless what if you want to avoid some pretty nasty consequences. If you don't pay your priority debts you can lose the use of some essential services or goods, and in some extreme cases you might even find yourself without a home.
You should pay your priority debts before anything else. You can postpone the payment on your non-priority debts if you are really strapped for cash. Just contact each non-priority creditor and tell them that you are going to pay them but you just need a little time to regroup your finances and get some extra cash. Getting more loans is out of the question.
If your non-priority creditors are afraid you will not pay your debt they might threaten with a lawsuit. To calm their minds and strengthen their position make a payment of 1£. This will prove to them that you truly intend to pay your debt but you cannot do it right way. The goal of any creditor is that of getting their money back and they won't pressure you too much and risk not getting all their money. True they will rather get all their money at the time it is due but they will compromise for later instead of nothing.
If you are having problems paying your priority debts then you are truly in a world of trouble. You will have to create a hierarchy and pay them off according to it. At the top there should be the most essential services and goods and at the bottom the least important. Here is the order of payment that I recommend:
- Mortgage/2nd Mortgage/Rent
- Secured loan/secured overdraft
- Council tax
- Magistrate fine
- Inland Revenue/VAT
- Gas/electricity/other fuel
- TV licence
- Telephone
- Hire Purchase
- CSA/Maintenance Orders
- Existing County Court Judgment
Even some of these could be skipped for a while, like the tv license, telephone... as long as you can find replacements or you can love without them.
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