If you are facing money problems, you may not be able to pay all of your bills in a given month. But, how do you pick and choose who gets paid? Far too many people wind up staying current on their credit card bills but wonder why they are getting evicted from their homes. This is backwards thinking. You have to prioritize who which bills to pay first, and unfortunately a lot of people are not making the right choices.
Which Bills To Pay First
Dave Ramsey, the financial guru and talk show host, likes to say that you should always keep roof over your head, your lights on, and food on the table. He also includes a modest car in the bills that you should consider paying first if you need that car in order to get back and forth to work like so many of us do. Too many people have their priorities backwards and do not pay these bills first. If you are in financial trouble either by drowning in credit card debt, medical bills, or some other debt that is making you struggle, there may come a time in your life when you have to be selective about which bills you are going to pay.
Protect Your Home No Matter What
You should pay your rent or mortgage payment at all cost. I know that there will be separate instances where interest old or adjustable rate payments have ballooned beyond what you are capable of paying. But, if you have a standard fixed rate mortgage payment or pay rent, then you need to do everything in your power to stay in your home. Your house payment should be the last one that you forego if you have to do without making a payment. Pay this payment first. Put it at the top of your budget.
Pay Credit Cards Last If You Have To
What is the worst thing that can happen to you if you stop paying your credit card bills? Your credit score has already probably started its nosedive if you cannot make some of your payments. So, that should not factor into your decision. A foreclosure, eviction, or short sale will be even more devastating that not paying your credit card bills. Let the credit cards go if you have to make a choice and are backed into a corner. You will just have to face a collection agency and be hounded on the phone for not paying. But, do not let a credit card company essentially throw you out of your home. Protect your home and your family by paying that bill first.
If you are in a financial crisis, it might be time to do what the old American settlers did against the Indians. It is time to circle the wagons. But, what do you circle the wagons around in times of financial trouble? You circle the wagons around your home. If you are backed into a corner and have to choose which bills to pay, pay your house payment or rent first.