How to Prioritize Debt

Child support: Beyond the moral obligations of taking care of your family, not keeping up on these payments can have severe consequences, including being arrested and going to jail.

Taxes: The government has privileges that other institutions don't when it comes to collecting debt, which makes paying any taxes you owe essential. The Internal Revenue Service can automatically deduct money owed from your wages, seize your bank accounts and other assets, such as your car or house, and even get you jail time for not paying. If you don't have the money to pay taxes, contact the IRS, because individuals can often work out long-term payment plans.

Student loans: While not as essential as the other debts mentioned above, these can also cause trouble if left unpaid. The problem is lenders can take automatic deductions from your paychecks, which can throw your budgets out of whack. Lenders may also claim your tax refund to pay this debt.

Low-Priority Loans

While you should make every effort to pay all your debt obligations, some debts can be put off in an emergency. While non-payment of these debts can bring harassment, debt collectors rarely have your best interests in mind. They are only after the debt they are trying to collect, and they will say anything to try to convince you to pay.