The traffic light guide for the bills you can (and can’t) miss if you’re stretched this January

January is always a tough month for household finances. After Christmas, millions of people struggle with juggling tight budgets, piles of bills and buy now, pay later (BNPL) instalments.

Research from Which? shows that 1.6 million households were forced to miss an essential payment, such as rent or mortgage payments, utility bills, or credit card or loan payments, last January.

While we don’t advise skipping bills, we know sometimes it can’t be helped. If you’re struggling to stretch your income this January - and you think you might end up missing some payments, it’s important to know which could cause you serious problems and which are less risky.

To help, we’ve created a simple traffic light guide:

Red – dangerous to miss

Rent, mortgage, council tax and energy bills top the danger list. Missing these can lead to eviction, legal action or service disconnection. These payments protect your home and safety, so they must always be prioritised. Other payments, like child maintenance, court fines and debts to HMRC, are also on this list, as there can be serious consequences for missing them.

Amber – caution advised

Credit cards, personal loans, catalogues and BNPL instalments fall into the amber zone. Missing payments here can incur late fees, damage your credit score or, in the case of BNPL, affect your ability to use the service. Contacting providers early can often unlock short-term flexibility, such as a payment break or revised schedule and prevent further action being taken.

Green – less serious

Most subscriptions, streaming services and gym memberships sit in the green zone. Missing a payment here is usually inconvenient rather than harmful. Access may be temporarily paused, but there are rarely financial penalties and your credit rating is not usually affected.

Where to turn for help

If you need extra help to get through the month, or you’re regularly missing payments, there are lots of places to turn to for extra help:

Household Support Fund and local council schemes

Households struggling to make ends meet may be eligible for support through the Household Support Fund or other local council schemes. This can help cover essentials such as food, energy and water bills, giving extra breathing space to manage other payments. Find out more.

Speaking to creditors

If a bill or loan payment is difficult to meet, contacting the provider early is key. Most energy, broadband and credit card companies will offer short-term payment breaks or revised schedules if approached in advance. Find out more.

Budget review and cutting costs

Reviewing income and spending can highlight where instant savings are possible. Pausing subscriptions, postponing non-essential purchases or reducing discretionary spending can free up cash to cover priority bills. Even small changes, such as cutting takeaways or switching to cheaper grocery brands, can make a difference. Use our free budget calculator to see where your money’s going.

Free debt advice

Speak to us. We can help you prioritise payments, negotiate with creditors and create a sustainable budget. Accessing advice early can prevent financial pressure from escalating.

Building a short-term plan

Planning ahead for the rest of the month can prevent one missed payment from cascading into multiple problems. Setting up alerts for due dates, keeping a simple list of essential payments and setting aside money for priority bills can provide clarity and reduce stress. Find out more.

Energy-saving measures

Small actions, like turning down the heating slightly, using energy-efficient appliances or only boiling the water you need, can reduce energy bills and free up cash to cover essential payments. We’ve got plenty of guides that may help:

Financial help from your energy supplier

Energy

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