Losing your job is really painful, specially if you are the breadwinner of the family. And it will be more painful if your have outstanding debts, and your debtors are calling your phone to remind you about your current debts. The bills? Oh, yes. Your monthly bills are also adding to your financial worries. So what should you do if your savings is gradually depleting? The best way to pay debts, while you don't have a new job yet, is to prioritize them. Knowing which one should be paid first is important. And so, you must know determine which are
essential debts, and non-essential debts.
You can call a debt essential if the debt calls for urgency, which you can face a grave problem if you won't pay immediately. Sample of this is the mortgage loan, or house rental. Your family needs a shelter. So, don't allow that your house will be taken from you. Another important debts that you should pay attention are child support, utility bills, and other secured loans. If you have unpaid taxes, negotiate immediately for a
new repayment plan. And your non-essential debt, although they are not in immediate situation, you should still pay them later, or you will suffer the consequences. Example of these are gasoline charges or loans from friends.
