Struggling to Pay Household Bills? Here's Where to Start
Struggling to keep up with household bills? Find out where to start, which payments may need urgent attention, what support to check and where to get free debt advice.
If the cost of running your home has become difficult to manage, knowing what to do first can make the situation clearer.
You may be worried about an upcoming bill, have already missed a payment or be dealing with several household costs at once. The right next step depends on what you owe and how urgent the situation has become.
If you have not already done so, start by working out how much your home really costs to run. That can help you see which costs are taking the biggest share of your money and where things have changed.
Then you can focus on the payments that need attention first and the support that may be available.
Start by getting a clear picture of your household bills
Gather the bills, statements and payment information connected to your home.
Write down what each payment is for, how much is due, when it is due and whether anything is already overdue. If you have arrears, note how much you currently owe as well as the normal ongoing payment.
This might include rent or mortgage payments, Council Tax, gas and electricity, water, broadband, insurance, service charges and any other regular costs that apply to your home.
The aim is not to create a complicated financial system. It is simply to see the whole picture before deciding what to deal with first.
Which household bills should you deal with first?
If you cannot afford every payment, it is important not to assume that the largest debt or the one charging the most interest should automatically come first.
Some debts are known as priority debts because the consequences of not dealing with them can be particularly serious.
MoneyHelper lists priority debts including rent or mortgage arrears, Council Tax or Rates, gas and electricity bills, court fines and certain other payments. The exact situation will depend on what you owe and where in the UK you live.
If you are unsure how to prioritise what you owe, MoneyHelper's Bill Prioritiser can help you identify which bills may need attention first.
If you have already missed a priority payment, think you are about to miss one, or are facing urgent action, getting free debt advice can be especially important.
What should you do if you have already missed a payment?
Do not ignore the bill simply because you cannot pay the full amount immediately.
Check the most recent letter, email, statement or online account so you know how much is outstanding and whether any action has already been taken.
Then contact the organisation you owe. Explain that you are having difficulty paying and ask what support or repayment options are available.
Depending on the type of bill and your circumstances, there may be options such as changing a payment arrangement, allowing more time to pay or agreeing an affordable repayment plan.
Keep a record of who you spoke to, when you contacted them and what was agreed. Save relevant emails, letters and statements too.
What help can you ask your energy supplier for?
If you are struggling with gas or electricity bills, contact your energy supplier as soon as you can.
Ofgem says suppliers must work with customers who are struggling to agree a payment plan they can afford. You can also ask about reviewing your current payments and debt repayments, more time to pay, payment breaks or reductions, hardship funds and other available support.
You can find current information through Ofgem's help with energy bills guidance.
If the issue is that your energy costs have increased and you are not sure why, our Energy Costs guide explains some of the information worth checking and keeping.
Check whether you are entitled to financial support
If household costs are difficult to manage, it is worth checking whether there is support you are entitled to but are not currently receiving.
GOV.UK provides links to free, independent benefits calculators that can estimate eligibility for benefits, Universal Credit, Council Tax Reduction and other support. You can find them through the GOV.UK benefits calculators page.
Council Tax Reduction may also be available to some people on a low income or receiving benefits. Eligibility and the amount of support depend on your circumstances and the scheme operated by your local council.
You can check the current rules and find your council through GOV.UK's Council Tax Reduction service.
Other help with essential household costs may be available depending on where you live and your circumstances, so use current government and local council information rather than assuming you will or will not qualify.
What if you are struggling with rent or housing costs?
Rent and mortgage arrears can have serious consequences, so these should not be left until other debts have been dealt with.
If you are struggling to pay your rent, contact your landlord or housing provider as soon as possible and explain the situation. If you have mortgage arrears or expect to miss a mortgage payment, contact your lender.
There may also be help with housing costs depending on your circumstances. GOV.UK's cost of living support brings together current information about help with bills and housing costs in England, with links to support for Scotland, Wales and Northern Ireland.
If you have already received formal action relating to rent or mortgage arrears, get specialist advice promptly rather than relying only on general online guidance.
What if your household bills have already become debt?
Once several payments have been missed, it can become difficult to know which problem to deal with first.
This is where specialist debt advice can be more useful than trying to choose a solution yourself.
House Krowd does not recommend a particular debt solution. Options depend on your circumstances, what you owe, your income, your assets and where in the UK you live.
MoneyHelper's Debt Advice Locator can help you find free and confidential debt advice online, by telephone or face to face.
A trained debt adviser can look at the whole situation, help identify priority debts, check whether you may be missing benefits or entitlements and explain the options available to you.
When should you get help urgently?
Some situations need quicker action than others.
Get specialist advice urgently if, for example, you are facing court action, bailiff or enforcement action, possible eviction or repossession, or a threat to disconnect your gas or electricity supply.
If you are not sure whether something is urgent, show the letter or notice you have received to a qualified adviser rather than waiting for the next stage.
Keep a record of bills, payments and conversations
When money is tight, paperwork can quickly become difficult to keep track of.
Try to keep bills, statements, notices and important correspondence together. If you speak to a landlord, lender, supplier, council or another organisation, make a note of the date, what was discussed and anything you agreed to do next.
A clear record can help you see how the situation is changing and makes it easier to explain what has happened if you later need support.
House Krowd helps residents build a clearer record of their home by keeping useful property information, documents and evidence together.
Understanding the problem is the first step
Struggling with household bills does not always mean the same thing. For one household it may be a sudden energy bill. For another it may be rent arrears, Council Tax, several missed payments or a change in income.
Start by understanding what you owe and what is due next. Identify any priority payments, contact the organisations involved and check what support you may be entitled to.
If payments have already been missed or the situation is becoming difficult to manage, free debt advice can help you understand the options available for your circumstances.
Which bills should I pay first if I cannot afford them all?
Some debts are treated as priority debts because not paying them can have particularly serious consequences. These can include rent or mortgage arrears, Council Tax or Rates and gas and electricity bills. If you are struggling with several payments, use an independent bill prioritiser or speak to a free debt adviser rather than choosing only on the size of the debt or interest rate.
What should I do if I cannot pay my energy bill?
Contact your energy supplier as soon as possible and explain that you are struggling to pay. Ofgem says suppliers must work with customers in payment difficulty to agree an affordable payment plan. Other support may include payment reviews, more time to pay, payment breaks or reductions and hardship funds, depending on your circumstances.
Can I get help with household bills?
Possibly. Support depends on your circumstances and where you live. It can include benefits, Council Tax Reduction, help with energy or water costs and local support. Check current government guidance, your local council and the organisations that provide your household services.
Where can I get free debt advice?
MoneyHelper's Debt Advice Locator can help you find free and confidential debt advice online, by telephone or face to face. Getting specialist advice is particularly important if you have missed priority payments or are facing urgent action such as court proceedings, enforcement, eviction, repossession or possible energy disconnection.