How do I decide which debts to pay first?
When you can't pay everything, some debts matter more than others — here's how to prioritise.
This guide helps you
- Understand why some debts are more urgent than others
- Identify your priority debts
- Make sure essentials like housing come first
- Avoid being pressured by the loudest creditor
- Get free help to make a plan
6 min
You're not alone
When there isn't enough to go around, it's easy to feel paralysed or to pay whoever is shouting loudest. But not all debts carry the same consequences, and a clear order of priority can protect what matters most.
This is general information, not financial advice. A free financial counsellor can help you sort your debts in the right order — National Debt Helpline 1800 007 007.
Priority debts usually come first
As a general guide, the debts that can have the biggest impact on your day-to-day life and security tend to be the most urgent. These often include:
- Rent or mortgage — keeping a roof over your head
- Utilities — power, gas and water
- Council and government debts
- Fines that can escalate if ignored
Debts like some credit cards or personal loans, while still important, may be more flexible. A counsellor can help you judge your own situation.
Step by step
- List every debt and note what could happen if it isn't paid (for example, losing a service or your home).
- Mark the priority debts — usually housing and essential services.
- Cover essentials and priority debts first from what's left after living costs.
- Talk to other creditors about smaller payments, pauses or hardship while you focus on priorities.
- Get free advice before making big decisions.
Good to know
Don't let pressure from one creditor push you into neglecting a more important debt. You can read about debt types and your options in our help centre. A financial counsellor can help you set priorities calmly and fairly.
If the pressure is affecting you, Lifeline 13 11 14 and Beyond Blue 1300 22 4636 are there.
Key takeaways
- Priority debts — like housing and utilities — usually come first
- Don't let the loudest creditor override more important debts
- Free financial counsellors can help you prioritise on 1800 007 007
Frequently asked questions
What is a priority debt?
Generally a debt where not paying could have serious consequences for your home, safety or essential services — such as rent, mortgage, power, water or certain fines. A counsellor can help you identify yours.
Should I pay the creditor who contacts me most?
Not necessarily. The creditor who chases hardest isn't always the most important to pay. Prioritise by consequence — what you'd lose if it went unpaid — and get free advice if you're unsure.
What do I do about the debts I can't pay this month?
Contact those creditors and ask for smaller payments, a pause or hardship help while you focus on priorities. A free financial counsellor (1800 007 007) can negotiate on your behalf.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.