Can't Pay Bills UK: What to Do Right Now

If you can’t pay your bills right now, you need to act fast. Today, not tomorrow.

This guide will show you exactly what to do, which bills to prioritise, where to get emergency help, and how to protect yourself from serious consequences.

Can’t Pay Bills UK: What to Do Right Now

First: Don’t Panic (But Do Act Fast)

I know you’re stressed. Bills piling up, not enough money, threatening letters.

But panicking helps nobody.

Here’s what you need to do RIGHT NOW:

Stop ignoring letters and phone calls – This makes everything worse
Work out which bills are urgent – Not all debts are equal
Contact the companies – Most will help if you ask
Get free help – Debt charities can negotiate for you
Apply for any support you’re entitled to – There’s emergency help available

Let’s go through each step properly.

Step 1: Work Out Which Bills to Pay First

When you can’t pay everything, you MUST prioritise correctly.

Some debts have serious consequences. Others don’t.

Priority Bills (PAY THESE FIRST)

These are bills where non-payment can lead to losing your home, going to prison, or having essential services cut off:

1. Rent or Mortgage

Consequence: Eviction or repossession
Action: Contact your landlord/lender IMMEDIATELY

2. Council Tax

Consequence: Bailiffs, money taken from wages, prison (rare but possible)
Action: Contact council to arrange payment plan

3. Energy Bills (Gas/Electric)

Consequence: Disconnection (though rare), forced meter installation
Action: Contact supplier to set up payment plan

4. Water Bill

Consequence: Cannot be disconnected, but debt mounts and court action possible
Action: Contact supplier, ask about social tariffs

5. Court Fines

Consequence: Bailiffs, prison
Action: Contact court immediately to arrange payment

6. Child Maintenance

Consequence: Court action, money taken from wages
Action: Contact CMS to reduce payments if circumstances changed

7. Income Tax/VAT (if self-employed)

Consequence: HMRC can take serious action, including bankruptcy
Action: Contact HMRC Time to Pay service (0300 200 3822)

8. TV Licence

Consequence: Criminal prosecution, fine up to £1,000
Action: Buy licence or cancel it and stop watching live TV/iPlayer

Non-Priority Bills (Pay After Priorities)

These are important, but won’t result in losing your home or essential services:

Credit cards
Store cards
Personal loans
Catalogues
Payday loans
Overdrafts
Money owed to friends/family

Still contact them to explain, but pay priority debts first.

Step 2: Make an Emergency Budget

Work out your absolute minimum survival costs:

Essential spending ONLY:

Rent/mortgage
Council tax
Utilities (gas, electric, water)
Food (basics only)
Essential transport (to work/school)
Essential phone contract
Essential childcare
Medications

NOT essential right now:

Subscriptions (Netflix, gym, etc.)
Eating out/takeaways
New clothes
Entertainment
Holidays
Non-essential travel

I know this is harsh. But if you can’t pay bills, you need to cut everything non-essential until you’re stable again.

Your income:

Wages (after tax)
Benefits
Any other income
Total: £____

Your priority bills:

Rent/mortgage: £____
Council tax: £____
Utilities: £____
Food: £____
Essential transport: £____
Other essentials: £____
Total: £____

Money left: £____ (Income – Priority bills)

If this number is negative, you’re in a priority debt crisis. Get free help TODAY from StepChange or Citizens Advice.

Step 3: Contact Every Company You Owe Money To

This is scary but essential.

Companies are much more helpful if you contact them BEFORE you miss payments.

What to Say

Use this template:

“I’m experiencing financial difficulties and I’m worried I can’t afford my payments. I want to pay what I owe but I need help. Can we discuss:

Reducing my payments temporarily
Freezing interest/charges
Giving me more time to pay
Setting up a payment plan I can afford”

What They Might Offer

Rent/Mortgage:

Payment holiday (1-3 months)
Reduced payments temporarily
Change mortgage to interest-only
Extend mortgage term

Council Tax:

Payment plan
Apply for Council Tax Reduction (benefit)
Spread arrears over the year

Energy Bills:

Payment plan based on what you can afford
Fuel Direct (payments taken from benefits)
Warm Home Discount (£150 off bill)
Social tariff (cheaper rates for people on benefits)

Credit Cards/Loans:

Reduced payments
Freeze interest
Payment holiday
Breathing space (formal scheme – see below)

Water:

WaterSure scheme (capped bills for people on benefits with high usage)
Social tariff
Payment plan

If They Won’t Help

If a company refuses to help:

Ask to speak to someone more senior
Mention you’re considering getting debt advice
Get free help from StepChange or National Debtline (they can negotiate for you)
Make a complaint if they’re being unreasonable

Step 4: Apply for Emergency Support

There’s help available if you’re struggling. You might be entitled to:

Benefits You Might Qualify For

Universal Credit

For people on low income or out of work
Apply at: www.gov.uk/apply-universal-credit
Can include housing costs

Pension Credit (if over State Pension age)

Extra money for pensioners on low income
Apply: 0800 99 1234
Often overlooked – millions miss out

Council Tax Reduction

Can reduce your council tax by up to 100%
Apply through your local council
Separate from Council Tax Support

Housing Benefit (if not on Universal Credit)

Help with rent costs
Apply through local council

Free School Meals

If you have children
Apply through your child’s school

[Link to your Benefits & UC posts for full details]

Emergency Grants and Support

Household Support Fund

Emergency grants for food, energy, essentials
Available through local councils
Don’t need to pay it back
Check your council’s website

Discretionary Housing Payment

Extra help with housing costs
Apply through council
For people on Housing Benefit or Universal Credit

Budgeting Advance/Loan

Interest-free loan from DWP if you’re on Universal Credit
£100-£812 depending on circumstances
Apply through Universal Credit account

Local Welfare Assistance

Emergency help from local council
Different schemes in different areas
Check council website

Charity Grants

Turn2Us Grant Search (www.turn2us.org.uk)
British Gas Energy Trust (energy debt grants)
Benevolent Fund (if you work in certain professions)

Food Banks and Essentials

If you’re struggling to afford food:

Food Banks:

Trussell Trust: www.trusselltrust.org/get-help
Independent Food Aid Network: www.foodaidnetwork.org.uk
Usually need a referral from Citizens Advice, GP, or social worker

Healthy Start Vouchers:

£8.50/week for pregnant women and families with young children
Apply: www.healthystart.nhs.uk

Community Shops:

Pay membership fee, get cheap groceries
Much cheaper than supermarkets

Step 5: Know Your Rights and Protections

Breathing Space

Breathing Space gives you 60 days of legal protection from creditors.

What it does:

Stops interest and charges on debts
Stops creditors chasing you
Stops bailiff action
Gives you time to get advice and make a plan

How to get it:

Contact a debt advice charity (StepChange, National Debtline, Citizens Advice)
They’ll check if you qualify and apply for you
It’s free

Who qualifies:

Anyone in debt (no minimum amount)
Not used Breathing Space in last 12 months

What it covers:

Credit cards, loans, overdrafts
Rent and mortgage arrears
Energy bill arrears
Council tax arrears
Most other debts

What it doesn’t cover:

Secured debts can still lead to repossession if not paid
Child maintenance
Some court fines

Protection from Bailiffs

If bailiffs are threatened:

Know your rights:

They can’t force entry to your home (except for criminal fines or tax debts)
They can’t take essentials (cooker, fridge, washing machine, furniture, work tools up to £1,350)
They can’t take items that belong to someone else
They must give you notice before visiting
You don’t have to let them in

What to do:

Don’t ignore them – this makes it worse
Check the debt is real (ask for proof)
Negotiate a payment plan
Get free advice from StepChange or National Debtline
Complain if they break the rules

Keep doors and windows locked. Don’t let them in unless they have a court warrant.

Protection from Disconnection

Energy: Companies can force-fit a prepayment meter if you’re in debt, but they must:

Follow strict rules
Consider vulnerability
Not disconnect you in winter if you’re vulnerable

Water: Water companies CANNOT disconnect your supply, ever. But you’ll still owe the money.

Protection from Eviction

Renters:

Landlord must follow proper legal process
Must give you notice (usually 2 months)
Must get a court order
You have time to sort things out

Homeowners:

Mortgage lender must follow pre-action protocol
Must consider your circumstances
Court will try to help you keep your home
You have time to negotiate

Step 6: Quick Ways to Find Extra Money

If you need cash urgently:

This Week:

Sell stuff on Facebook Marketplace/Gumtree
Return items you bought recently (within 14-30 days usually)
Check for unclaimed money (www.gov.uk/unclaimed-estates-bona-vacantia)
Ask employer for advance on wages
Ask close family for help (only if realistic they’d help)

This Month:

Matched betting [link to your matched betting post] – £500+ possible
Online surveys – £50-80/month
Overtime at work
Cancel all non-essential subscriptions
Switch to cheaper supermarkets (Aldi/Lidl saves £50-100/month)

Longer-Term:

Side hustles [link to your £500/month post]
Check you’re claiming all benefits
Reduce housing costs (move to cheaper place, get lodger)
Sell car and use public transport

[Link to relevant money-making posts]

What NOT to Do

❌ Don’t Borrow More to Pay Bills

Avoid:

Payday loans (interest rates up to 1,500%)
Doorstep lenders
Rent-to-own stores
Guarantor loans
Logbook loans

These make everything worse. You’ll end up with more debt at higher rates.

❌ Don’t Pay Non-Priority Debts First

Credit cards might be calling you more than your landlord, but pay your rent first.

Losing your home is worse than damaging your credit score.

❌ Don’t Ignore the Problem

Burying your head in the sand is the worst thing you can do.

Interest keeps adding. Court action gets started. Bailiffs get involved.

Face it today.

❌ Don’t Pay for Debt Advice

Debt advice is FREE from:

StepChange
National Debtline
Citizens Advice
PayPlan

Never pay a company that promises to write off your debt or charges upfront fees.

❌ Don’t Give Up

I know it feels overwhelming. But there are people who can help, support available, and options you haven’t considered yet.

You can get through this.

Get Free Help RIGHT NOW

Don’t try to deal with this alone.

StepChange Debt Charity

Website: www.stepchange.org
Phone: 0800 138 1111
Free advice, can negotiate with creditors for you

National Debtline

Website: www.nationaldebtline.org
Phone: 0808 808 4000
Free advice and fact sheets

Citizens Advice

Website: www.citizensadvice.org.uk
Local offices for face-to-face help
Can help with benefits, debt, housing

PayPlan

Website: www.payplan.com
Phone: 0800 280 2816
Free debt management plans

MoneyHelper

Website: www.moneyhelper.org.uk
Phone: 0800 138 7777
Government-backed guidance

Turn2Us

Website: www.turn2us.org.uk
Grant search and benefits calculator

If you’re in immediate crisis:

Samaritans: 116 123 (24/7)
Mental Health Crisis Line: 0800 183 4444

Final Thoughts

If you can’t pay your bills, you’re not alone.

Millions of people in the UK are struggling right now.

The key actions:

Prioritise correctly – Pay rent, council tax, energy first
Contact everyone – Before you miss payments
Get free help – StepChange, Citizens Advice, National Debtline
Apply for support – Benefits, grants, Breathing Space
Cut non-essentials – Temporarily until you’re stable

Don’t be like me and ignore it. That makes everything worse.

Contact the companies today. Most want to help.

And get proper free advice. These charities deal with this every day. They know how to help.