When money gets tight, figuring out what gets paid first isn’t always easy. You may have a dozen bills due around the same time, but putting off some can create bigger problems than letting others wait a little longer.
A late payment could mean an extra fee, lost service, added interest or a mark on your credit history. That’s why it helps to know which bills deserve a spot near the top of the pile, especially during a month when there isn’t quite enough money to comfortably cover everything at once.
Here are 12 bills you probably don’t want slipping to the bottom of your payment list.
Rent or Mortgage
Keeping a roof over your head is reason enough to put your rent or mortgage near the very top of the list. Falling behind can lead to late fees and eventually much bigger housing problems, so this isn’t a payment I’d push aside to cover less important expenses.
Electricity, Gas and Water
It’s easy to take electricity, running water and heat for granted until you’re facing a shutoff notice. Utility bills should stay high on the list because falling too far behind can mean fees, past-due balances and eventually losing an essential service.
Car Payment
If you rely on your car to get to work, take the kids to school or simply get around, protecting that transportation matters. Falling behind on an auto loan can bring late fees, hurt your credit, and, if the problem continues, eventually put the vehicle itself at risk.
Car Insurance
Paying for car insurance isn’t particularly exciting, but allowing your policy to lapse can create a much more expensive problem. Besides leaving you without coverage if there’s an accident, driving uninsured can have additional legal and financial consequences depending on where you live.
Related: Too Many Buyers Make These 11 Mistakes When Shopping for a New Car
Homeowners or Renters Insurance
Insurance is one of those bills that can feel easy to push down the list because you’re paying for something you hope you never actually need. But a lapse in coverage could leave you responsible for a major loss yourself, which makes keeping the policy active far more important than it may seem.
Credit Card Minimum Payments
Even when you can’t afford to pay off the entire balance, don’t forget about the minimum payment that’s due. Missing it can trigger late fees and other consequences, while carrying the balance can make an already expensive debt even costlier as interest adds up.
Related: 12 Credit Card Habits That Help You Stay Debt-Free
Student Loans
Student loans can stick around for years, which makes it tempting to treat the monthly payment as just another bill in a very long line of them. Ignoring the payment isn’t a good solution, so if you’re struggling to keep up, contact your loan servicer and ask what repayment options are available.
Phone and Internet Bills
For most households, phone and internet service aren’t really optional anymore, especially when you rely on them for work, school, banking, appointments and staying connected. Falling behind can lead to late fees or service loss, so these bills are worth paying before streaming services and other subscriptions.
Childcare
When you depend on childcare so you can work, falling behind on the bill can create a problem that goes well beyond a late fee. Providers have their own payment policies, and keeping your account current helps protect an arrangement your entire weekly schedule may depend on.
Property Taxes
Property taxes may only come due once or twice a year, which is exactly why the deadline can sneak up on you. Missing it can bring penalties and interest, so this is one of those bills worth putting on the calendar well before the due date.
Personal and Bank Loans
Personal loans and other installment loans generally have a set monthly payment, and missing one can mean late fees and could affect your credit. If you have several debts competing for your money, don’t simply assume this one can wait without first checking the terms of your loan.
Health Insurance and Medical Bills
Health expenses can already be unpredictable, so letting your insurance lapse or ignoring a medical bill can make an expensive situation even harder to manage.
Keep your coverage current when possible, and if a medical bill is more than you can afford, contact the provider about a payment plan or financial assistance instead of letting it sit unpaid.
