The next debts in line to be paid are the ones tied to the government. If you are paying child support, that must come next. The consequences for not paying child support can be severe and may even lead to jail time. Income tax debts are also serious. Being in debt to the government, as opposed to a regular creditor, puts you in a different ball game. Try to pay off any taxes that you owe and, even if you can’t afford the amount that may be due, you need to continue to file your federal income tax.

The bills that I have mentioned so far in this series should be your first concern. Many people make the mistake of paying their smaller bills off first because they are easier to handle. What those people fail to realize is that higher priority debts will still need to be paid and they are tied to the most valuable things in your life, like your family and home. Family and housing-related bills, car loans, utility bills, child support, and tax debts must come before credit card and hospital bills. If you cannot pay your most important bills, it will be important for you to sit down and review your options.

Tags: car loan, car payment, child support, common mistakes, credit card bills, file tax return, high priority, hospital bills, housing bills, income tax, income tax debt, mortgage payment, utility bills

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