Consumers with bad credit often feel overwhelmed as bills continue to pile up. Many have no idea where to even begin when trying to repair their credit. Thus, a great deal of individuals end up slipping further and further into debt and wasting valuable time that could be used on getting a fresh start. There are certain bills that have more bearing on a person’s credit rating than others. Therefore, these more important bills should be the first that are paid every month as a person tries to get back on their feet and repair their credit rating.

Most Important

The best way to decide what bills should be paid first is to gather up all the bills available and write down a list with pen and paper. One of the first things that should appear at the top of the list of importance is a person’s rent or house payment. The next most important bills to take care of are any utility bills. These bills include things such as electricity, gas, water, or telephone bills. After utility bills comes any child support or matrimony payments because prolonged non-payment of such bills could end up in incarceration. Taxes are another debt that should be high on the list. Should the IRS be breathing down an individual’s neck, a payment plan can usually be worked out if the offender makes an effort to work with the IRS. Insurance bills, as well as car payments, are other essential bills that should be paid in order to make sure that medical treatments are covered and that transportation is available.

Less Important

Although all bills are of some importance, there are a few that can stand a few missed payments better than others, but it is important to remember that all unpaid or late payments go on record regardless. Personal loans from friends are usually one of the least important debts because friends will generally work with an individual through hard times. Bills from department stores or grocery bills can be put low on the list. Also, any loan where there was no collateral given should be put low on the list because creditors are quick to repossess, but do not want to go through the hassle of getting a court judgment in the case of an unsecured loan. Other bills that are less important include subscriptions to magazines or any legal or accounting bills that may have accumulated over time.