How to prioritize bills when you cannot pay everything

Introduction

If you are looking at a stack of bills and thinking, “There is no way I can cover all of this,” you are not alone. When money is tight, your goal is not to be perfect. Your goal is to protect your basic needs first, reduce the chance of a crisis, and buy time to work out safer payment arrangements.

Trusted consumer and health researchers note that financial strain can affect stress, health, and whether people get needed care. Making a clear plan helps you protect both your household and your health.

Key takeaways

• Focus first on bills that protect your safety and stability, especially housing, utilities, food, medications, and essential transportation.
• Do not drain money toward lower priority debts if doing so puts your housing or essential services at risk.
• Contact companies early and ask for hardship options, payment plans, or due date changes before you fall further behind.
• If collections are involved, confirm the debt and understand your rights before you agree to pay.
• If you are an older adult or caregiver, prioritize coverage and premiums that protect access to care, including Medicare premiums when applicable.

Start with safety and stability

When you cannot pay everything, it helps to think in two categories.

High priority bills

These are bills where missing a payment can quickly put your housing, safety, or basic functioning at risk. High priority bills often include:

• Rent, lot rent, mortgage, or property tax payments tied to keeping your home
• Utilities that keep your home safe and livable, such as electricity, gas, water, and heat
• Food
• Medications and medical supplies you need right now
• Insurance premiums that protect access to care or protect a critical asset, such as health insurance, Medicare premiums, and car insurance required to drive legally
• Essential transportation costs that allow you to get to work or medical care
• Court ordered obligations, such as child support

Lower priority bills

These bills can still matter, but they usually do not create an immediate safety crisis the way housing or utilities can. Many consumer law resources place unsecured debts here, such as many credit cards and some medical bills.

This does not mean these bills are “no big deal.” It means you address them after you have protected basic needs and made a plan. A key idea is simple: if you cannot pay a high priority bill, paying a lower priority bill instead often makes the situation worse. For example, keeping up with credit cards while falling behind on rent is usually a dangerous trade.

Make a one page picture of your money and bills

When stress is high, it is easy to make decisions based on who calls the most or which bill feels most urgent in the moment. A simple one page snapshot helps you choose based on consequences and safety, not pressure.

Write down:

• Your monthly income and the dates it comes in
• The cash you have available right now
• Each bill, its due date, and the minimum amount due
• What happens if it is late, such as late fees, shutoff risk, eviction risk, repossession risk, coverage loss, or collections
• The contact number and your account number
• Any past due amount and any notice dates, such as a shutoff notice or eviction notice

If you share expenses with a spouse, partner, or family member, add a note about who is responsible for calling each company. Clear roles reduce missed follow ups.

Decide what to pay first

A practical way to prioritize is to work in two time horizons: what must be handled in the next 72 hours, and what must be handled over the next 30 days.

Your next 72 hours

Ask yourself:

• Are you at immediate risk of losing housing?
• Is a utility shutoff notice pending?
• Do you have enough food for the week?
• Do you have the medications and supplies you need right now?
• Do you have safe transportation to work or medical care?

If any answer is “no,” aim your first dollars and first phone calls there. You are trying to prevent problems that are hard to reverse.

Your next 30 days

Once you have addressed the most urgent risks, build a short plan for the rest of the month.

• Pay what you can toward high priority bills, even if it is not the full amount, and ask about formal payment arrangements.
• Keep records of every call, including the name, date, and what was agreed to.
• For lower priority debts, focus on avoiding rushed decisions. A short delay while you confirm details and explore options can be safer than paying something you cannot afford.

Use consequences first rules to guide hard choices

If you feel stuck between two bills, these rules can help you decide.

Rule 1: Protect your housing first

Housing instability creates ripple effects for health, safety, and the ability to manage every other bill. If you are behind on rent or mortgage, prioritize communication early and ask about repayment options.

If you are a homeowner and struggling with mortgage payments, HUD approved housing counseling and CFPB housing resources can help you understand options and next steps.

Rule 2: Keep essential utilities on

Utilities are often tied to health and safety, especially for older adults and people who rely on medical devices or temperature sensitive medications. If shutoff risk is on the table, call the utility and ask about:

• A hardship plan or payment plan
• Due date changes
• Any protections that apply in your area, since rules vary by state
• Local assistance programs

Government benefit guides can also help you find energy assistance options.

Rule 3: Treat food and essential medications as non negotiable

Skipping meals or rationing medications can create immediate health risks. Research also links financial strain and unmet basic needs with worse health outcomes in older adults.

If you are tempted to skip care because of cost or because you are afraid of bills, pause and get support. Research on medical debt shows that bills can strongly shape whether people get needed care, including mental health care.

Rule 4: Understand secured debts vs unsecured debts

A secured debt is tied to something that can be taken if you do not pay, such as a car loan. An unsecured debt is not tied to a specific asset, such as many credit cards.

This does not mean you should always pay secured debt first. It means you should ask, “What is the real consequence if I miss this payment, and how quickly would it happen?” Consumer guidance emphasizes prioritizing debts whose nonpayment quickly harms your household.

Rule 5: Do not let collections pressure set your budget

When money is tight, the loudest bill is not always the most important bill. Debt collection rules require debt collectors to provide specific information about the debt, and you have the right to dispute certain debts within specific time frames.

A safer approach is:

• Confirm the debt is yours and the amount is correct
• Make a plan based on your essentials
• Avoid agreeing to payments you cannot maintain

Call the right places early and ask for the right kind of help

The earlier you reach out, the more options you often have. Here are common categories and what to ask for.

Housing: landlord, property manager, or mortgage servicer

You can ask:

• Can we set up a repayment plan?
• Can the due date be adjusted to match my income timing?
• Are there temporary hardship options or forbearance options for homeowners?
• What paperwork do you need from me?

If you are renting and need help finding resources, federal housing insecurity guidance can help you think through next steps.

Utilities

You can ask:

• Is there a payment plan or hardship program?
• Are there protections based on age, disability, or medical need in my state?
• Can you note my account to prevent shutoff while we apply for assistance?

Medical bills

Medical bills are often confusing, and they can come in waves. If you are getting medical bills you cannot pay, focus on two goals: keep getting the care you need, and reduce the chance that bills spiral through errors or missed paperwork.

Helpful steps include:

• Ask for a clear, itemized bill and confirm what insurance has processed
• Ask if the provider offers a payment plan or financial assistance screening
• Ask what happens if you can only pay a small amount each month

For practical help understanding medical bills, you can also review: https://understoodcare.com/uc-articles/breaking-down-medical-bills

Taxes

If you owe federal taxes and cannot pay in full, the IRS describes installment agreements and payment plan options. In many situations, you can also apply online.

Student loans

If you have federal student loans and payments are unaffordable, options may include different repayment plans and other relief pathways depending on your situation and current rules. Because programs can change, it is often best to review official guidance and contact your servicer to confirm what applies to you right now.

Protect yourself when debt collectors are involved

If you are getting collection calls or letters, try to slow the situation down enough to protect yourself.

Confirm the debt first

Consumer guidance explains that debt collectors generally must provide validation information about the debt, and it also explains how the dispute process works.

Practical steps:

• Ask for the validation information in writing if you do not have it
• Compare it to your own records and insurance explanations of benefits when relevant
• Do not share sensitive personal information unless you are confident who you are speaking with

Know what a debt collector can and cannot do

Federal resources describe limits on harassment, false statements, and unfair practices in debt collection.

If you are not sure what to do when contacted, consumer resources also outline practical next steps.

Watch for debt relief and bill help scams

When you are under pressure, scam offers can look like a lifeline. If someone promises to erase debt quickly, asks for money upfront, or pressures you to act immediately, pause.

For scam prevention tips, you can review: https://understoodcare.com/uc-articles/avoiding-scams-frauds

Find assistance that can reduce the pressure

If you are juggling essentials, it is reasonable to look for support rather than trying to power through alone. Federal benefit guides can help you find programs for food, housing, utilities, and other needs.

If you are an older adult on Medicare and worried about housing, you may find this helpful: https://understoodcare.com/uc-articles/eviction-prevention-and-emergency-rent-help-for-older-adults-on-medicare

If you have benefits that may help with groceries or even utilities in some cases, you can review: https://understoodcare.com/uc-articles/flex-cards-and-grocery-benefits-that-can-also-pay-rent-or-utilities

Special considerations for older adults and caregivers

If you are an older adult, or you are helping a parent or loved one, prioritization often needs an extra layer: protecting access to healthcare.

• If Medicare premiums are billed directly to you, make sure you understand how to pay and what happens if premiums are missed.
• If a Medicare plan premium is not paid, CMS materials describe possible consequences and timelines, which can include disenrollment depending on the situation.

If you are a caregiver, it may help to create a shared bill calendar with:

• Premium due dates
• Pharmacy refill dates
• A list of who to call for each bill
• A folder for notices and letters

This can prevent missed deadlines that are difficult to fix later.

How Understood Care can support you

If you are overwhelmed, you do not have to sort this out by yourself. Understood Care advocates can help you organize the problem, understand which bills are most urgent, and take practical next steps such as reviewing confusing medical bills or exploring support resources.

You can start here: https://understoodcare.com/uc-articles/financial-help‍

FAQ

• What bills should I pay first when I can’t pay everything?
  Start with bills that protect housing, essential utilities, food, and medications. Then focus on bills that protect access to healthcare and required transportation. Lower priority debts usually come after basic needs are covered.
• Should I pay rent or credit cards first?
  In most situations, protecting housing comes first because the consequences of losing housing can be immediate and severe. If paying credit cards would cause you to fall behind on rent or utilities, that is often a risky trade.
• How do I prioritize bills on a fixed income like Social Security?
  Match due dates to your income dates, keep a one page list of essentials, and contact billers early to ask for due date changes or hardship plans. If you are on Medicare, also prioritize premiums that protect access to care.
• What if a debt collector is calling and I feel pressured to pay?
  You can ask for written information about the debt and take time to confirm it is correct. Do not agree to payments you cannot afford. Keep notes of dates, names, and what was said.
• Is medical debt a high priority bill?
  Urgent care and needed prescriptions are high priority for health. A medical bill that is already in the mail may be handled differently than rent or utilities. If you are forced to choose, protect housing, utilities, food, and medications first, then contact the medical provider to ask about options.
• Can I make partial payments if I cannot pay a full bill?
  Sometimes partial payments can help, but the best move depends on the bill type and the company’s rules. Before sending money, ask whether they can set up a formal payment arrangement and how partial payments are applied.
• What should I do if I’m behind on utilities and worried about shutoff?
  Call the utility immediately and ask about payment plans, hardship options, and any local protections. Also look into government benefit resources that can help with energy bills.
• How can I reduce monthly bills quickly without taking on more debt?
  Start by contacting companies to ask about hardship plans, payment arrangements, or due date changes. Then look for benefit programs that can reduce essential costs like food or utilities.

References

• Consumer Financial Protection Bureau. Prioritizing bills (tool). https://files.consumerfinance.gov/f/documents/cfpb_your-money-your-goals_prioritizing-bills_tool.pdf
• National Consumer Law Center. Rule #1: Prioritize Debts Whose Non-Payment Immediately Harms Your Family. https://library.nclc.org/book/surviving-debt/rule-1-prioritize-debts-whose-non-payment-immediately-harms-your-family
• Consumer Financial Protection Bureau. Get help paying rent and bills. https://www.consumerfinance.gov/housing/housing-insecurity/help-for-renters/get-help-paying-rent-and-bills/
• Consumer Financial Protection Bureau. Help for Homeowners. https://www.consumerfinance.gov/housing/housing-insecurity/help-for-homeowners/
• Consumer Financial Protection Bureau. Find a Housing Counselor. https://www.consumerfinance.gov/find-a-housing-counselor/
• U.S. Department of Housing and Urban Development. Housing Counseling. https://www.hud.gov/stat/sfh/housing-counseling
• Consumer Financial Protection Bureau. Debt collection (consumer tool). https://www.consumerfinance.gov/consumer-tools/debt-collection/
• Consumer Financial Protection Bureau. What information does a debt collector have to give me about a debt they’re trying to collect from me? https://www.consumerfinance.gov/ask-cfpb/what-information-does-a-debt-collector-have-to-give-me-about-the-debt-en-331/
• Consumer Financial Protection Bureau. What should I do when a debt collector contacts me? https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-when-a-debt-collector-contacts-me-en-1695/
• Federal Trade Commission. Debt Collection (FAQs). https://www.bulkorder.ftc.gov/system/files/publications/debt-collection_faq.pdf
• Internal Revenue Service. Payment plans; installment agreements. https://www.irs.gov/payments/payment-plans-installment-agreements
• Internal Revenue Service. Online payment agreement application. https://www.irs.gov/payments/online-payment-agreement-application
• USAGov. Facing financial hardship. https://www.usa.gov/financial-hardship
• USAGov. Get help with energy bills. https://www.usa.gov/help-with-energy-bills
• Medicare.gov. How to Pay Part A & Part B premiums. https://www.medicare.gov/basics/costs/pay-premiums
• Centers for Medicare and Medicaid Services. What Happens When a Plan Member Doesn’t Pay Their Medicare Plan Premiums? https://www.cms.gov/Outreach-and-Education/Outreach/Partnerships/Downloads/11338-P.pdf
• Moon KJ, Miller KEM, Galea S, Ettman CK. Medical Debt and Forgone Mental Health Care Due to Cost Among Adults. JAMA Health Forum. 2025. https://jamanetwork.com/journals/jama-health-forum/fullarticle/2832767
• Samuel LJ, et al. Propensity score weighted associations between financial strain and subsequent inflammatory biomarkers of aging among a representative sample of U.S. older adults. BMC Geriatrics. 2022. https://bmcgeriatr.biomedcentral.com/articles/10.1186/s12877-022-03112-5

This content is for education only and does not replace guidance from your local SNAP agency or EBT customer service. If you believe you’re experiencing active fraud or feel unsafe, contact local authorities right away.