What happens if I can't pay my bills?
When you have more bills than money, you enter 'Crisis Mode'. The most common mistake people make is paying the person shouting the loudest (usually credit cards or loans). This is dangerous. You must prioritize keeping a roof over your head and the lights on. Everything else can wait.
1 The Typical Timeline
If you take no action, this is the standard statutory process. Timescales are approximate but typical for 2026.
Missed Multiple Payments
You have less income than outgoings. You must switch to an 'Emergency Budget' immediately. Stop paying non-essential debts like credit cards to protect your rent/mortgage.
Priority Arrears Build Up
If you miss Rent, Council Tax, or Energy, enforcement moves fast. Landlords can seek eviction (Section 8) after 2 months of arrears. Council tax moves to court in weeks.
Enforcement Agents
For Priority Debts, bailiffs can be used quickly. For Non-Priority debts (credit cards), it takes months or years to get to this stage.
Breathing Space
You can apply for 'Breathing Space' to freeze all interest and enforcement for 60 days while you find a debt solution.
2 Free Calculators & Checks
Do not guess. Use this tool to sort your pile of bills into 'Must Pay' and 'Can Wait'.
Priority Sorting Game
Council Tax Arrears
In a crisis, the rules change. Use this calculator to strip back to survival expenses only.
Emergency Budget Planner
In a crisis, you only pay for survival: Roof, Heat, Light, Food. Everything else stops.
Enter your details to see your plan.
Worried about the lights going out? Check if your supplier is legally blocked from disconnecting you.
Can I be disconnected?
Energy companies have strict rules they must follow before cutting you off. Check your status.
Standard Protection
Suppliers can disconnect you, but it is a last resort. They usually try to install a Prepayment Meter first.
DRO? IVA? Bankruptcy? Use this flowchart to see which government solution fits your situation.
Solution Finder
Answer 3 questions to see which government-approved debt solution fits you best.
The Golden Rule: Priority vs Non-Priority
Priority Debts are ones where the creditor has extra powers—like taking your home, cutting off your electricity, or sending you to prison. These include Rent, Mortgage, Secured Loans, Council Tax, Energy, and Court Fines. Non-Priority Debts are ordinary debts like credit cards, overdrafts, and payday loans. They have very little power.
Can they cut off my energy?
It is rare now, but yes. If you don't pay gas/electric, they can force-fit a Prepayment Meter (so you self-disconnect if you have no cash). However, they cannot strictly do this if you are 'Vulnerable' (e.g., elderly, disabled, young children).
Summary of Options
Prioritize Rent/Mortgage
This is your #1 priority. You can be evicted for rent arrears. Talk to your council's 'Homelessness Prevention' team if you are at risk.
Token Payments for Cards
If you can't pay everything, pay your Priority Debts in full, and offer your credit cards £1 per month. They cannot take your home without a long legal fight.
Check for Benefits
Billions in benefits go unclaimed. Use a calculator like 'EntitledTo' to see if you can boost your income.
Common Questions
Should I use a payday loan to pay rent?
NO. This is a debt spiral. Never borrow expensive money to pay priority bills. You should instead contact the landlord and offer what you can, or seek a 'Discretionary Housing Payment' from the council.
What is a Debt Relief Order (DRO)?
A DRO is a way to have your debts written off if you owe less than £50,000, have very few assets, and less than £75 spare income per month. It costs nothing to apply (fees were scrapped).
Will I go to prison?
Only for specific Priority Debts: Council Tax (rarely/simultaneously with wilful refusal) or Magistrates Court Fines. You cannot go to prison for not paying credit cards, loans, or utility bills.
Official Sources & References
Related Situations
Other guides accurately explaining what happens next in money & debt .
What happens if I miss a Council Tax payment?
If you miss a payment, the council sends a reminder. If you don't pay within 7 days, you lose the right to pay by instalments and the full year becomes due.
What happens to debt when you die?
A guide to 'Insolvent Estates', inherited debt myths, and the Order of Payment.
What happens if I can't pay my Car Finance (PCP)?
How to use 'Voluntary Termination' to return your car, clear the debt, and avoid damage charges.