Debt Repayment Plan: Which Debts Should You Pay First?

When paying off debts, you must decide the order you are going to pay off your bills. You can avoid late fees, defaulting on payments, and paying high-interest rates by creating a solid debt repayment plan. You should consider paying off your debts from highest priority to lowest so that you can manage your funds easily. 

debt repayment

The following tips will help you pay off your debt quickly:  

High-Priority Debts

You should start paying high-priority debts, as these debts cost you more money every month. If you clear this first, it will be easier for you to pay off your remaining debts.


You should pay your mortgage payments on time to retain your home or other collateral properties. You can customize your repayment plan based on your property size and current income.

Utility Bills

The utility bills must be paid on time to continue receiving the services of phone, water, power, and gas. The utility companies provide affordable payment plans to help you pay off your bills.

Child Support 

If you fail to make payments for your child support, your driving license may be suspended.  You can customize your payment plan to suit your budget.

Car Payments 

You can avoid repossession by making car payments on time. You must pay your car insurance on time to claim compensation if you are in an accident. 

Student Loans 

You can customize your repayment plan to avoid defaulting on student loan payments. Failing to pay student loan debts can result in garnishing of your social security benefits, wages, or federal income tax refund. 

Unpaid Taxes 

IRS debts can be paid either in a lump sum or in short-term payment depending on your income. 

Medium-Priority Debts 

A medium-priority debt is one that should be paid after high-priority debt, which include:

Medical Bills 

You should pay off your treatment bills on time.

Credit Card Payments

You should make your credit card payments on time to avoid losing your credit privileges. Also, defaulting on credit card payments will affect your credit score.

Low-Priority Debts

These debts do not have devastating effects if you delay the payments or fail to pay. However, these debts should be paid either sooner or later.

Loans from Friends and Relatives

You must pay these debts, but your friends and relatives can understand that you are on a tight budget. You can request for extra time or a few days to make payments. 

Department Store and Gasoline Charges 

To avoid losing your credit privileges, you should pay these bills. If your outstanding bill is large, you might have to face a lawsuit.

Unsecured Loans 

These loans do not have collateral, which means a creditor cannot take your property. However, you may face a lawsuit if you fail to pay these debts. 

Don’t have enough money to pay off these debts? Get a payday loan that will help you out until your next payday. 


Kimmy Burgess

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy has a number of pets including cats, birds, and a Chinese water dragon.

Category: payday loans

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