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What bills to pay first when money is short

| Apr 13, 2020 | Bankruptcy, Bankruptcy |

A lot of people are struggling with significant economic concerns right now. Unfortunately, many don’t have enough money to pay all of their bills.

Are you being forced to assess your bills and make some hard decisions about what to pay and what to skip because of your financial situation? Here are some ideas to consider:

1. Utilities

It’s essential to keep your electric, heat and water supply going. (For some, the internet is also an essential utility.) You can try to negotiate a reduced payment or see if there is emergency assistance available, but they should definitely be a top priority.

2. Food

You have to buy food, However, you may be able to reduce your expenses by buying in bulk, using discount stores and looking for other ways to stretch your food.

3. Rent or mortgage

These are big priorities because you don’t want to risk homelessness. Even if the eviction or foreclosure process is forestalled, not paying these could make it harder for you to recover from difficult financial times.

4. Car loan

This may be one of the biggest bills you have, but you don’t want to skip it unless you have no choice. If you have more than one car, consider which one you could do without and let that note go before the other.

5. Unsecured debts

These are credit card bills, store accounts and similar debts. Sure, if you don’t pay these your credit rating may take a hit — but they’re likely to be the least important of all your bills. It’s usually wisest to sacrifice these first.

If your debt seems overwhelming, it may be time to consider other options, like Chapter 7 bankruptcy.

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