When times are tough, these are the bills you should pay first
Sep 30, 2014, 4:58 PM
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Most people know that when times are tough financially, sacrifices have to be made. But when there are more bills than money, it’s important to know which payments to prioritize.
It might be easier to first identify the things that can’t be sacrificed: a roof over your head, electricity, water and a way to get to work.
Groceries are also essential of course, but the cost of food can be significantly reduced by following some simple steps. Shopping with a grocery list, reducing the amount of meat you consume and making more things from scratch are not only proven to be cheaper, but are healthier too.
You are now required by law to have health insurance, and healthcare isn’t something you should skimp on anyway.
Anything that could be repossessed if payments aren’t received are also a must. New technologies are helping lenders be more persistent if you miss a bill, so pay attention to which ones matter most.
Look at cutting non-essentials like subscriptions or cable, and if necessary make only the minimum payments on your credit card bills. If the financial issue is only temporary, garage sales or bake sales can help you generate some cash in a pinch.
If you still can’t make ends meet, you can declare bankruptcy, which will protect some of your crucial accounts like retirement funds.
All in all, it’s important to assess your situation and gather all possible information before making any major financial decisions. But there are things you can do when your wallet is feeling squeezed.