Tips for Prioritizing Bills

Updated: Feb 4



Having lots of debt can quickly consume your mind. And then, when you get even a few dollars of extra cash, you might be tempted to apply it towards all of your bills at once. But wait - before you put a little money towards every bill, I think it's worthwhile to implement a quick strategy. Here's a few suggestions to follow if you receive some extra cash this season:

  • Confirm if you have special promotions on any of your bills, i.e. "Zero percent interest for 6 months, skip the first three payments, etc." If the due date for bills like these is quickly approaching, I would prioritize paying those bills first.

  • Consider putting the extra money towards your smallest bill first. So if one bill is $750 and the other is $2,000, I would focus on paying off the smaller bill. You will find great satisfaction with paying the smaller bill off and it will inspire you to pay off the larger $2,000 bill. You can also follow the Dave Ramsey Snowball Method; it's a great way to prioritize debt repayment.

  • The last suggestion is to save the extra money (rather than applying it to bills) until you get enough money to fully payoff one of the bills. This is a two-for one deal: taking this approach will help you develop patience while also helping you get into the habit of saving.


I hope these quick tips will be helpful for you this holiday season and always.

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