When you can’t pay all your bills, deciding which ones to pay first can feel overwhelming. Should you cover your credit cards or your rent? What about student loans, medical bills, or a car payment?
The truth is, not all bills are equally important in the short term. Some have serious consequences if left unpaid, while others can be negotiated or delayed. Understanding how to prioritize your payments can reduce stress and help you avoid more debt down the road.
Let’s walk through a clear, practical system for deciding which bills to pay first.
Start by taking a deep breath and organizing all your bills. List everything, including:
Once you’ve gathered your bills, rank them using this general order of priority.
Your home should be your top priority. Missing a rent payment or falling behind on your mortgage can lead to eviction or foreclosure. If you’re struggling to cover this, talk to your landlord or lender right away. You may qualify for assistance or a payment plan. You can also explore help from HUD-approved housing counselors.
Utilities like water, electricity, and gas are essential for daily living. These bills often have grace periods, but long-term nonpayment can result in shutoffs. Contact your providers if you’re behind—they may offer reduced payments, payment plans, or hardship programs.
If you rely on your vehicle to get to work, pay your car loan and insurance to avoid repossession or cancellation. Losing your transportation can affect your income and your ability to recover financially.
While we're talking about work-related expenses, this is the place to slot in your cell phone bill if you rely on a working phone line for your employment. If you still have a landline, it's time to cut the cord.
Court-ordered payments like child support must be paid in full. Failing to pay child support could result in legal action, wage garnishment, or even jail time. These bills carry serious consequences.
Health, auto, and renters’ insurance protect you from larger losses. Missing premiums may cancel your coverage and leave you vulnerable in an emergency.
Credit card debt is usually unsecured, so it won’t lead to the loss of a physical asset. However, skipping minimum monthly payments leads to late fees, interest charges, and damage to your credit record. Make the minimum payment if possible and prioritize higher-interest cards when you have extra money.
Unsecured debts include credit card balances, personal loans, and payday loans. These don’t have collateral tied to them, which means missing a payment won’t result in repossession, but they will affect your credit score and may trigger collection calls.
Credit.org's debt management programs can help reduce your monthly payment and interest rates on these kinds of debts.
Medical bills are also unsecured, and many hospitals or clinics offer flexible repayment terms. You may be able to negotiate your bill or qualify for financial assistance. Medical debt typically doesn’t accrue interest, so it may be a lower priority than credit cards.
Federal student loans offer options like deferment or income-based repayment. If you’re struggling, apply for these programs before missing a payment. Private student loans don’t have the same protections, but your lender may still offer temporary relief if you call before falling behind.
Refer to Credit.org’s student loan help resources to understand your options better.
These include gym memberships, streaming services, and other non-essential bills. If you need to cut something, these are the lowest priority. Cancel or pause them where possible.
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Once you’ve listed all your bills, organize them by due date and importance. This lets you create a clear repayment plan and prevents important bills from slipping through the cracks.
Tracking your bills helps you monitor your outstanding balance, avoid late fees, and stay ahead of debt collectors. Tools like spreadsheets, budgeting apps, or even a notebook can help you stay organized.
If you’re behind on rent payments, act quickly. Many renters mistakenly think they can delay rent without risk, but eviction processes can start after just one missed payment. Avoid serious consequences by contacting your landlord early and seeking rental assistance if needed.
Visit our rental counseling page to get help.
If you’ve missed multiple payments, you may begin receiving calls or letters from debt collectors. Don’t panic. The law requires collectors to send a validation notice, and you have the right to dispute the debt or request they stop contacting you.
Read our full guide on what to do if a debt collector contacts you and visit the CFPB’s debt collection FAQ for your rights under the FDCPA.
When you don’t have enough money to pay everything, use your income to cover needs first. Start with:
By following this order, you protect your housing, your job, and your legal standing. It’s the most effective way to maintain stability during a tough time.
Even when you can’t pay everything at once, a structured payment plan helps you stay in control. Use your monthly after-tax income to cover essentials and spread the rest across remaining debts.
Consider a nonprofit credit counseling agency like Credit.org to help you build a realistic plan that protects your well-being and avoids more debt.
If you can’t afford all your bills, some can be safely delayed or canceled without major harm:
Contact your providers to pause or cancel these services. Every dollar you save helps with more important bills.
Maintaining your financial situation during a crisis means protecting your shelter, utilities, transportation, and income. That’s why minimum payments on essentials come before full payment of lower-priority debts.
Avoid collection agency calls and late fees by communicating early and keeping records of every agreement you make. If you owe money you can’t pay, it’s better to offer a small payment than none at all.
If your situation improves or you receive an extra paycheck or tax refund, prioritize paying down high interest debt first. Use any extra paycheck to pay more than the minimum on your credit cards, catch up on rent, or build a small emergency fund.
You might also consider using a high-yield savings account to store funds for future bills, giving you more breathing room the next time money gets tight.
Falling behind on bills can lead to:
Planning ahead and following a repayment strategy can help you avoid these consequences and protect your financial well-being.
When you’re overwhelmed and unsure which bills to pay first, Credit.org’s certified counselors are here to help. We offer free and confidential support to help you:
Take the first step toward peace of mind. Schedule a free counseling session with Credit.org today and start moving toward financial stability.
