In 2016, the U.S. Census Bureau reported that the average median income was $59,039 per household. While popular media doesn’t openly publicize it, 16.2 million American families are currently struggling well below the federal poverty level, and many citizens are finding it difficult to pay their monthly bills.
Prioritizing Your Debts & Expenses
When your household is running on a limited budget, you need to categorize and prioritize which bills and payments need to be handled first. While you can’t ignore your creditors, you do need to take care of your basic needs first.
Also, it’s important to note that your creditors don’t want you to file for bankruptcy. By paying even a portion of your bill, you can prove to the creditor that you’re making a good faith effort to alleviate your debt. Depending on your personal circumstances, they may be willing to help you develop a new payment plan or lower your interest rate.
When deciding how to balance your debts, make sure to prioritize these payments:
- Make sure that you have money for food and clothing
- Pay your rent or mortgage to avoid eviction or foreclosure
- Don’t forget to pay your utility bills
- Purchase essential household necessities such as soap and toilet paper
- Pay your critical bills
After taking care of your basic health and household needs, you can then sort your remaining bills to determine which debts need to be paid next. There are certain bills you need to pay immediately. For example, failing to pay child support and tax debts can lead to severe legal consequences. Once you pay off your critical bills, you can focus on paying any unsecured debts such as credit card and telephone bills.
Learn How Bankruptcy Can Improve Your Life
Despite popular misconceptions, bankruptcy can be the start of a new and productive lifestyle. If you’re struggling financially, contact the Northbrook bankruptcy attorneys at Bach Law Offices to explore your legal options. Our experienced legal team can review your unique financial circumstances and help you decide if bankruptcy can improve your standard of living.
We can guide you through each step of the bankruptcy process. Contact Bach Law Offices at (847) 448-0025 to schedule a free consultation.