7 Monthly Bills to Always Pay Before the 1st of the Month

Most Americans are in debt. With the cost of living still surging from the pandemic and lingering inflation, budgets are tight, prompting many to rely on credit cards for living expenses and groceries. According to Ramsey Solutions , “The average American debt (per U.S. adult) is $66,772, and 77% of American households have at least some type of debt,” and some are behind on paying. “7.18% of cardholders fell into delinquency in the second quarter, up from 5% in the previous quarter,” CBS News reported.

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With soaring costs affecting everything from housing to cars, food, basic necessities, and more, many are trying to tackle multiple debts each month, which can seem impossible. Prioritizing which bills should be paid is key, and below is a helpful guideline for strategizing monthly expense payments.

Also check out which expenses to cut from your budget .

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Mortgage/Rent

Having a roof over your head should be the top priority. Pay the mortgage or rent every month to prevent being evicted or the bank taking away your home. If you’re unable to pay, contact your landlord or lender and have an honest conversation about your circumstances.

“Often, they can point you towards programs that help homeowners or renters who are in similar situations,” per American Family Insurance . The site explained, “For example, the United States Department of Housing and Urban Development (Opens in a new tab) has resources and programs to help if you’re having trouble keeping up with mortgage payments and can help you avoid foreclosure.”

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Utilities

Shelter is a necessity, but you don’t want to be in the dark. Paying the electric and water bills is also a must in order to properly function and live in your home. Programs like the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program can assist during hard times.

Food

It might not feel like it, but grocery prices are starting to level off. That doesn’t mean the cost of food is going down, though. It’s just not increasing at a significant rate like in previous months, per the U.S. Department of Agriculture . That said, many struggle to stock their fridge and pantry while juggling numerous debts. Food isn’t an option, so this bill must be paid, but there are food pantries across the U.S. that can help if needed.

Car

Depending on where you live, you probably need a car, so this is another monthly expense to prioritize. That also includes insurance. According to Rachel Cruze from Ramsey Solutions, if you have high payments that you can’t afford or cannot pay off your car in 24-28 months, selling it for a more affordable option is worth considering. She explained, “Make sure the total value of your car or if you have a family, the total value of all the cars you own does not exceed 50% of your annual salary,” in a recent video .

Health Insurance

A pile of medical bills is the last thing needed when already dealing with mounting debt. If you’re self-employed or don’t have a job that covers your health insurance, this is a bill also to prioritize. A lapse in coverage can cause big problems, like avoiding the doctor because it’s unaffordable, and a health issue turns into a bigger health problem, or an accident or injury occurs. Health insurance is a must-have bill that can’t be skipped.

Student Loans

As tempting as it might be not to repay a student loan, Suze Orman , host of the “ Women & Money ” podcast, previously told GOBankigRates, “People need to remember to not put off paying your student loans. It’s not going away and it should be the first monthly bill you pay. It’s not going to disappear. You can’t bankrupt your student loan.”

To fit a student loan payment back into your budget, Orman stated, “Give up eating out or other unnecessary expenses so you can start making your payments.”

Credit Cards

Credit cards have high interest rates, so paying the statement balance each month is better. However, if that’s not possible, talk to your credit card company and work out an affordable payment plan. You don’t want to ruin your credit and prevent qualifying for loans down the road, but “at the end of the day, it’s more important to pay bills that keep your family healthy and safe,” American Family Insurance stated.

This article originally appeared on GOBankingRates.com : 7 Monthly Bills to Always Pay Before the 1st of the Month