People just starting to get out of debt often struggle to decide where to allocate their money. Each person needs to make their own list based on their own priorities and circumstances, but Debtor’s Anonymous member Wittygal’s payment priority list may serve as a decision guide:

#1 Food
#2 Shelter, rent, and basic utilities
#3 Clothing (upkeep)
#4 Transportation
#5 Telephone
#6 Federal Government, student loans, IRS
#7 Other bills (gift giving, paying your bills such as cable, etc.).
#8 Creditors, good faith with a letter

Personally, we would replace transportation with internet. When we have to get around, we can get around by bike.

Furthermore, if you’re not paying one of these areas, you might need to cut back expenses. For instance, paying for cable while you still have out massive loans.

Who Do I Pay First? [Squeaks]
(Photo: Getty)

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