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The Problem with ‘Non-Priority’ Debt

Non-priority debts are expenses which don't have serious consequences if unpaid - at least, not at first. Thing is, there's a problem with this term...

‘Non-priority’ is an interesting word. Whereas ‘priority’ encourages immediate action, its opposite can give you an excuse to tackle matters later. ‘Non-priority’ is fine when the matter really isn’t urgent but arguably shouldn’t be used to describe any form of debt.

After all, debt is always a priority for someone.

What is non-priority debt?

‘Non-priority debt’ is generally defined as a debt where the consequences of non-repayment are less severe than other forms of finance. For example, council tax is defined as a priority debt because not paying this bill could ultimately lead to prison. Credit card debt, on the other hand, is defined as non-priority because in the short term, non-repayment will typically lead to demands from the creditor and additional charges. Longer-term, you may face legal action and bailiff intervention.

Although bailiffs enforcing a debt isn’t as bad as a prison sentence, it’s still quite a serious consequence. Few would treat a visit from these professionals as a non-priority matter.

What is the problem with non-priority debt?

If a form of debt is defined as being non-priority, there is a risk that it may be treated as nothing to be concerned about. Due to its status, it’s quite common for people to incorrectly describe these expenses as not being ‘real debt’.

Assuming creditors are paid, there are no problems. However, left ignored, the interest can increase. As the consequences of non-repayment aren’t “as serious”, it’s not unheard of to prioritise other expenses. With additional penalty charges now in effect, something which wasn’t initially being treated as a priority can now feel very urgent indeed.

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This is an easy situation to get into

Debt only becomes a problem when it develops into something unmanageable. Borrowing money is entirely normal and, without access to additional funds, many of us wouldn’t have access to homes or been able to afford an education.

All debt has the potential to become unmanageable. Even if dealing with non-priority finances, you may need help to resolve these if you can’t see a way to repay them. With a debt consolidation loan, you could repay these accounts within a matter of hours and just make one affordable monthly repayment.

Even if your debts have damaged your credit rating, a consolidation loan for bad credit could be just what you need to regain control of your finances.

To find out if you are eligible, get in touch today. Potentially, you could have the funds in your account within 24 hours.

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Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.

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