Everyone has financial pressures sometimes. There are so many reasons that people can fall behind financially: medical problems, losing a job, divorce, overspending at the holidays, or just not budgeting well. Debt is a fact of modern life. If you have more bills than money to pay them with, you may be considering what you should pay first.

The following are some general rules to think about in deciding which bills to pay. Keeping in mind that these are general rules, and that your situation could be different what should you pay first? If your debt problems are temporary, it may be enough to just budget carefully following these guidelines for a month or two until your finances improve. You should not consider this to be legal advice, since no lawyer can advise you without understanding your complete debt situation. Every situation is different, and so this list might not be right for your particular circumstances. You might consider these items when you are trying to decide what to pay:

1. Necessities of life must come first; food and medicine are certainly most important.
2. Shelter is a close second; rent or mortgage payments should be made if possible.
3. Minimum utility payments for electricity, water and sewer, and heat, at least enough to keep the utility companies from shutting off service.
4. Transportation costs, especially if you need the transportation to earn income, either in the form of a car payment or money for public transportation.
5. Insurance for any vehicle, since it is usually required by law.
6. Child support payments, especially those that have been court ordered.
7. Any payroll loans or bank overdrafts, since they carry such high interest rates.
8. Income tax payments.
9. Loans that are secured by household goods should be lower priority, as creditors usually will not act too quickly to collect on such loans or repossess household items.
10. Unsecured loans, such as credit cards, student loans, medical bills, and other similar debts, are also low priority. Even if creditors threaten legal action, it usually is more important to pay your current living expenses and avoid getting further in debt.

Avoiding Debt Collection and Bankruptcy

Remember, if you can avoid collection actions or bankruptcy, you will be better off in the long run. Try to cut back on your spending as much as possible to get caught up on your payments. Sometimes, in the face of overwhelming debt, you may need to make the hard choice to give up a house or a car. You should probably seek legal advice before negotiating with a secured creditor in this situation. Since your legal rights to your property and your credit rating will both be affected, it is important to understand all your options.

If your situation continues to deteriorate, and you are unable to pay your debts as they come due on a regular basis, you may want to consult with a Washington bankruptcy lawyer to find out if bankruptcy is a good solution. Read over the website to find out more about bankruptcy, or call the attorneys at Resolve Legal for a free consultation. We can help you achieve financial freedom.

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