Hierarchy of Debt

All debts are not equal. And if you are ever caught with more debt than income, you need to make some choices. These are the recommended priorities.

    Rent/Mortgage

  1. Utilities
  2. Child Support
  3. Car Payment
  4. Secured Debt
  5. Unpaid Taxes
  6. Food
  7. Unsecured Debt
  8. Other Bills and Needs

You can find an elaboration of the above at my artcle of the same name Hierarchy of Debt along with a process for managing the debt.

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