When money’s tight and bills are stacking up, figuring out which ones to pay first can feel like financial triage. But don’t worry—you can stay in control (and stay sane) by using a smart, step-by-step plan to prioritize your expenses.

1. Start with the essentials

Your top priority is to keep your home safe, warm, and running. That means paying for:

  • Housing: rent or mortgage
  • Utilities: electricity, water, gas
  • Food: basic groceries, not gourmet takeout
  • Transportation: gas, public transit, or car payments if you need to get to work

These are non-negotiable. Without them, everything else gets harder—fast.

Next up are the bills that could get you into legal trouble if you ignore them. These include:

  • Child support or alimony
  • Court fines or legal fees
  • Tax payments (if you’re on a payment plan or owe back taxes)

Falling behind on these can trigger serious consequences, so keep them current if at all possible.

3. Maintain insurance coverage

Insurance often feels optional—until something goes wrong. Make room in your budget for:

  • Health insurance
  • Car insurance (especially if driving is essential)
  • Renters or homeowners insurance

A lapse in coverage can be way more expensive than the premium.

4. Keep secured debts current

Secured debts are tied to things you don’t want to lose—like your home or car. If you miss payments, you could face repossession or foreclosure.

  • Prioritize car loans or leases
  • Keep up with your mortgage if you haven’t already included it in housing

If your vehicle is your lifeline to work or family, protecting it is crucial.

5. Make minimum payments on unsecured debt

Credit cards and personal loans usually don’t result in losing your stuff if you miss a payment—but they do hit your credit, hard. Try to:

  • Pay at least the minimum on credit cards
  • Contact lenders if you’re struggling—they may offer forbearance or hardship programs

This isn’t the top priority, but it’s still worth managing to protect your long-term financial health.

6. Communicate with creditors

If you can’t pay everything, don’t go silent. Many lenders and service providers will work with you if you’re upfront.

  • Call before your due date
  • Explain your situation
  • Ask about payment plans, reduced rates, or grace periods

Proactive communication beats collections calls every time.

7. Build a short-term spending plan

Once you know your priorities, sketch out a realistic, no-frills spending plan based on your current income. Revisit it weekly or monthly and adjust as needed.

8. Look for support if you need it

If you’re overwhelmed, you’re not alone. Consider:

  • Nonprofit credit counselors who can help with budgeting or debt plans
  • Local assistance programs for rent, food, or utilities

Asking for help doesn’t mean you’ve failed—it means you’re being smart and resourceful.

TL;DR: your bill-paying game plan

  • Essentials first: housing, food, utilities, transportation
  • Handle legal obligations
  • Keep insurance active
  • Stay current on secured debts
  • Pay minimums on credit cards and loans if you can
  • Talk to creditors early
  • Make a short-term plan
  • Ask for help when needed