Dear Mary: Our mortgage was due on the first. As I write, it is the 21st. We have the money to pay it; however, my husband thinks it would be better to pay our credit card bills and get 30 days behind on our mortgage. What do you think should be paid first?—Lisa P., Florida
Dear Lisa: When you cannot pay all of your bills, you need to prioritize them according to the consequences you will suffer for nonpayment. If you fall behind on your mortgage or rent, you have to assume the mortgage lender or landlord will foreclose and you will be out on the street with the kids, your big screen TV, and Barcalounger. If you are late with your credit card payment, about all you'll get is a late fee and a trashed credit report. While neither consequence is great, there’s little doubt which is more severe. For more information, please read “What to Do When You Can’t Pay Your Bills” at EverydayCheapskate.com/bills.
