How to Prioritize Debt

Essential utilities: You need to pay your utility bills, which will help to keep your residence livable. This includes gas, electricity and water bills. You may be able to defer payment of these bills, depending on where you live and the season (it is common that heating can't be turned off in the winter). Alternatively, you may be able to make partial payments and still receive the service. Make sure that you pay at least the minimum to keep them active. Most other utilities are not essential, although some are easier to determine than others. For example, your cable TV is clearly not essential, but your phone could be if you need it for work.

Car loan: If your car is essential for you to keep your job and continue to earn money, this is also a payment that you need to keep current. If you lose your car, then you lose your way of earning money -- which can cause even more financial problems. If your car is not needed for your work (for example, you can take the bus, carpool or find some other transportation), your car payment falls lower on the list. Much like with a mortgage, if you can't pay this loan and know you will be losing your car to repossession, don't use the money meant for the car loan on other debts. You'll need the cash to get some other type of transportation to keep your job.