In Debt? Prioritize Paying These 4 Bills First

Image source: Getty Images

Outstanding debt can make managing your finances a challenge. As you work to pay down your debt and change your current financial situation, prioritizing how you spend the money in your checking account is essential. Need help determining which bills are the most important ones to prioritize? Here are some suggestions to guide you as you tackle your debt.

1. Housing

The last thing you want to do is lose your home. Whether you rent or have a mortgage, it's essential to prioritize paying your housing costs. Pay this bill immediately every month so you can continue to have a safe place to live while you work to improve your finances. If you own a home and no longer have a mortgage, be sure to stay on top of your property tax bills.

This also includes essential utilities like gas and electricity. If you're struggling to pay these costs, talk to your service providers. There may be assistance programs you can apply for to help pay your bills. Alternatively, switching to budget billing could make your monthly costs more manageable throughout the year.

Finally, you may want to explore local or state-run assistance programs. These programs are often available during the colder months. You may need to submit proof of income or other documentation when applying for help, but any money saved on these expenses can make a big difference.

2. Food

Food is another necessity. When allocating how to spend your money, allocate some funds for food expenses. If you need help bridging the gap, look to resources in your community, like food banks, for help.

Another option is to apply for Supplemental Nutrition Assistance Program (SNAP) benefits. If you meet the eligibility requirements, these benefits could help you afford to buy more food for your family.

3. Vehicle or transit expenses

You should also prioritize these costs if you own a vehicle and need it to get to and from work or as part of your everyday routine. Expenses like auto loan bills and car insurance are essential to pay, especially if other forms of transportation are limited in your community.

If you want to free up more income to put toward debt, consider gathering car insurance quotes to see if you can save money on insurance premiums. Review our list of the best car insurance companies to learn more about which companies to contact for quotes.

If you rely on public transit, you should prioritize these costs, especially if you commute to school or work. You may want to see if there are ways to save money on transit costs. If you use public transit regularly, check to see if an unlimited transit pass could offer savings. The more money you save on necessary expenses, the faster you can pay off your debt.

4. Higher-interest debt

Putting any leftover income toward paying down your debt is wise. The sooner you reduce the total money you owe, the faster you can get out of debt. For your remaining debts, it can be beneficial to prioritize paying down higher-interest debt first -- like credit card debt.

Debt with higher interest rates will continue to grow, so the faster you eliminate it -- the more money you'll save on interest fees in the long run. Doing this can help you get out of debt faster.

Ensure you continue paying the minimum amount due for your other debts so you don't rack up late fees or default on these accounts. Making the minimum payment is better than not paying the bill at all.

Don't give up hope

If you're in debt, you're not alone. Remember that your current situation is only temporary. Every step you take to reduce your debt is a major win for your financial future. If you need help coming up with a plan to tackle your debt, check out our list of the best debt payoff apps.

Alert: highest cash back card we've seen now has 0% intro APR until nearly 2026

This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.