“I Can’t Pay My Bills!” – Prioritizing Your Monthly Bills

A person counting money on their table with calculators, pencils, and paper covering the table as they manage their income and bill payments.

I Can’t Pay My Bills – Prioritizing Your Monthly Bills

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.

Which Bills to Pay Off First

Start by taking a deep breath and organizing all your bills. List everything, including:

  • Rent or mortgage payments
  • Utilities and essential services
  • Car loans and insurance
  • Credit cards and other unsecured debts
  • Federal and private student loans
  • Medical bills
  • Child support or court-ordered obligations
  • Subscription services or lower priority expenses

Once you’ve gathered your bills, rank them using this general order of priority.

1. Rent or Mortgage Payments

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.

2. Utility Companies

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.

3. Car Loans and Transportation Costs

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.

4. Child Support and Court-Ordered Debts

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.

5. Insurance Premiums

Health, auto, and renters’ insurance protect you from larger losses. Missing premiums may cancel your coverage and leave you vulnerable in an emergency.

6. Minimum Monthly Payments on Credit Cards

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.

7. Unsecured Debts

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.

8. Medical Bills

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.

9. Federal and Private Student Loans

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.

10. Other Debts and Subscriptions

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.

A post-it with the word "pay bills" pinned on a cork board, with billing statements pinned as well.

All Your Bills in One Place

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.

Rent Payments and Eviction Risk

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.

Dealing with Debt Collectors

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.

How to Prioritize Paying When You Can’t Afford Everything

When you don’t have enough money to pay everything, use your income to cover needs first. Start with:

  1. Housing and utility bills
  2. Transportation and insurance
  3. Court-ordered debts like child support
  4. Minimum payments on credit cards
  5. Debts with the highest interest rates
  6. Medical bills or payment plans
  7. Federal student loans (with hardship requests if needed)
  8. Lower-priority bills and subscriptions
  9. Collection accounts

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.

Managing All Your Bills with a Payment Plan

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.

Lower Priority Bills Can Wait

If you can’t afford all your bills, some can be safely delayed or canceled without major harm:

  • Streaming subscriptions
  • Magazine or box delivery services
  • Credit card bills with small balances
  • Luxury purchases or non-essential services

Contact your providers to pause or cancel these services. Every dollar you save helps with more important bills.

Protect Your Financial Situation

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.

When You Have Enough Money to Pay More

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.

Serious Consequences to Avoid

Falling behind on bills can lead to:

  • Eviction or foreclosure
  • Repossession of your car
  • Wage garnishment from unpaid child support
  • Loss of insurance coverage
  • Damage to your credit record
  • Increased late fees and penalties
  • Harassment from debt collectors

Planning ahead and following a repayment strategy can help you avoid these consequences and protect your financial well-being.

Need Help Prioritizing Your Bills? We’re Here for You

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:

  • Organize and track all your bills
  • Create a custom repayment plan
  • Understand your rights when dealing with debt collectors
  • Lower interest rates on unsecured debts
  • Avoid more debt and rebuild your finances

Take the first step toward peace of mind. Schedule a free counseling session with Credit.org today and start moving toward financial stability.

Jeff Michael
Article written by
Jeff Michael is the author of More Than Money, a debtor education guide for pre-bankruptcy debtor education, and Repair Your Credit and Knock Out Your Debt from McGraw-Hill books. He was a contributor to Tips from The Top: Targeted Advice from America’s Top Money Minds. He lives in Overland Park, Kansas.
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