How to Prioritize Debt

Your most important obligation is to yourself and your family, and you need to pay the debts in the order that they benefit you the most. Never change your payment priorities because of debt collectors' demands.

Here are a few debts and bills that take a back seat to those mentioned above:

Credit cards: Any unsecured debt is a low priority when you do not have enough money. This includes credit cards, gas cards and department store cards. Again, don't let the annoying tactics of debt collectors change your payment priorities.

Service debts: Bills from a doctor, dentist or hospital for which service has already been rendered also fall into this lower payment category. If you are able to make some payment, but not all, these debts can often be negotiated.

Timeshares, boat loans and RV loans: Making payments to vacation resorts that aren't your primary residence or for other luxury items, such as a boat or recreational vehicle, are of low priority. While these items may be repossessed, they aren't essential for your everyday living and you shouldn't spend what little you have available on them.

By having a firm understanding of which debts are most important to pay when there isn't enough money to go around, you will ensure that you don't get yourself in any more financial trouble than is necessary.