Cancelled contracts (such as gym memberships, mobiles phones and satellite TV).Doorstep loans, from lenders, such as Provident.The following items are considered non-priority debts: The amount you offer your creditors is based on how much surplus income is left after you’ve covered your priority household bills, other expenses, and living costs.
A good way to establish your typical spend on living costs is to work out an average based on figures from recent shopping receipts or bank statements.īe aware that if you’re spending an excessive amount on non-essential living costs, your creditor may ask for more information about your spending, to understand whether it's reasonable.įinally, you will need to list down the debts you currently owe along with the payment you’re offering to pay towards them. These are costs you usually spend money on day to day. Household appliances that you’re renting.Repairs and maintenance costs (such as heating cover or boiler insurance).Digital television or streaming services.The amount left to pay would be classed as a non-priority debt, which we’ll explore later. However, the digital TV company wouldn’t be able to impose the same consequences as, say, your mortgage provider if you failed to pay your mortgage on time. These expenses are still quite important, but not necessarily to the same degree as your household bills.įor example, if you cancel your digital TV subscription you may need to pay a bill for breaking the contract. Arrears on any of the bills listed above.Magistrates court fines (for example TV licence fines or criminal fines).County Court judgments (decrees if you live in Scotland or Judgments in Northern Ireland).Hire purchases or logbook loans, typically for a car.Water (except for Scotland or Northern Ireland residents, as water is included in Council tax or Rates).Council tax (or Rates if you live in Northern Ireland).For example, if you don’t pay your mortgage or make several late payments on your mortgage you could eventually face repossession proceedings from your mortgage provider. Missing payments on priority expenses can have severe consequences. Your household bills are your most important expenses and must be accounted for on your income and expenditure form. Use our benefits calculator to find out what benefits you might be entitled to.
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