Dollars and Sense: A Blueprint for Prioritizing Bills (2024)

In our current economic climate when a majority of Americans are living paycheck-to-paycheck, smart spending is a challenge. You may have to make hard financial decisions about which bills you should pay and which ones you delay. Although everyone’s financial situation is unique, here are suggestions on how to pay bills—specifically which payments to prioritize.

Mortgage or rent payments should be the top priority to ensure you have a secure place to live. A home financed with a mortgage is a secured debt, and the lender expects timely and consistent payments. If you own your home, real estate taxes and insurance must be paid (these expenses may be included in the monthly mortgage payment). Any condo fees or mobile home lot payments also should be considered a high priority.

Essential utilities such as electricity, water, and heating are crucial for your well-being and should be paid to maintain a comfortable living environment. Consider other expenses in this category such as house phones, Internet and cable TV. Can you downgrade your current plans or even suspend service temporarily?

If you rely on transportation to get to work or essential activities, prioritize car payments, public transportation costs, or other related expenses. Consider more cost-efficient commuting options if the high cost of gas is eating into your budget—can you take public transportation even temporarily and save more?

Health insurance, car insurance, and other essential insurance premiums should be maintained to provide financial protection in case of emergencies. While it may seem counterintuitive to pay for something you (likely) won’t need, having a safety net in the event of an accident can save you thousands.

Child support is a court-ordered payment. Thus, it’s a high priority from a legal and moral standpoint. It’s the court’s job to establish a payment that is fair for both parties. The court also must ensure the well-being of the child. In some states, child support payments are auto deducted from your paycheck.

If you don’t have enough money to meet your monthly obligations, connect with your creditors to explain the situation and request assistance. These accounts may include credit card bills, medical bills, or merchant accounts. Explain that your financial situation is preventing you from making the payments, and you are working towards a solution. You don’t have any collateral tied to these loans, so you are not in danger of losing property, but these creditors do expect to be paid back.

In navigating these financial responsibilities, we understand that life can present challenges, and we encourage you to reach out for support and explore options that ensure the well-being of your home and peace of mind.

With a multi-decade career in communications, Julie Rogier serves on GreenPath’s content marketing team. She has presented on financial wellness for groups including the 2021 and 2022 Financial Services Midwest Summit, and regularly writes about financial health and wellness for several publications including U.S. News and World Report.

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