Tool 6 - Prioritizing Bills

By santeia2013 | Updated: July 11, 2024, 7:50 a.m.

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Part of the 8 Tools If You Are Behind on Bills Series hosted by Dominion Financial Management. This is tool number 6, titled Prioritizing Bills! Enjoy!

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Dominion Financial Management, Inc.
Tool 6: Prioritizing Bills
How do I make tough choices in tight months? 
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This tool will help you:

Understand what might happen if you fall behind on your obligations.
Assess the tradeoffs in your situation. 
Make a plan to pay this month's most important bills. 
Start with one question:
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How do you decide which bill to pay first?
Bill statements and overdue notices.

Any letters from creditors that threaten possible eviction, repossession, default, or discontinuation of service. 
What you'll need:
A step further:
If you have to miss a payment, try calling your creditors to tell them why.

You may be able to make short-term arrangements. For example, if you are in good standing with your creditors, they may be willing to forgive the occasional fee. 
If you find you're often late with a particular bill, negotiate a new due date
to better line it up with the dates you receive income or benefits. 
Timing matters. 
The consequences for paying bills late can vary depending on how late you are. For example, utility and credit card payments received within 30 days of their due dates typically don't affect your credit report. After 60 days, however, your credit card company may choose to raise the interest rate on your balances, which can make it take longer to pay off what you owe. 
One strategy is to rotate the bills you pay each month. 
While not ideal, this can prevent you from losing your car or house, having a utility shut off, or getting into serious default on a loan. 
You may also wish to contact a certified housing or a credit counselor to help you build a plan to pay your debts. 
Additional Resources:
HUD Office of Housing Counseling: 800.569.4287
National Foundation for Credit Counseling: 800.388.2227
Weigh the risk of not paying certain bills right now.
Now Prioritize your Bills
https://files.consumerfinance.gov/f/documents/cfpb_ymyg_behind-on-bills_print.pdf
Print page 18 inside of workbook!
Thank you!

Tool 6 - Prioritizing Bills

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