The first step toward organized bills is prioritizing your expenses.

If you’re struggling to pay bills and you’re barely making it paycheck-to-paycheck–you’ve got to cut to the bare bones. This list suggests an appropriate order pf importance for most people:

• Necessities (shelter, food, medication): If you haven’t got a place to live or anything to eat, other expenses hardly matter. Make sure you funnel money to mortgage/rent and groceries before anything else.
• Essential Utilities: You need water, heat and electricity. You don’t need high-speed Internet, a deluxe cable package or even an energy-guzzling flat screen. If you need to cut costs, consider dropping some luxuries to save for the basics.
• Transportation: Whether you get around in your own car or on public transit, you need to make sure you budget for travel costs: without transportation, you probably can’t work, which means no bills will get paid. Downsizing to a less-expensive vehicle or taking the bus on occasion may help you save money here.
• Child Support or Alimony: If you’re obligated to pay such expenses, you should make sure you do: missing maintenance and support payments can land you in jail, not just trouble with your creditors.
• Taxes: The government could seize your property if you fail to pay taxes; make sure you avoid this by placing taxes next on the list.
• Student Loans: These fall lower on the list, particularly if collection attempts have been neither made nor threatened.
• Unsecured Loans: Credit card bills, payments for services and even loans from friends should fall last on your priority list, partly because your creditors can’t seize any property if you don’t pay and partly because these are the most likely to be discharged should you file for bankruptcy.

Getting Organized

Once you know what needs to be paid, consider developing a system to help you remember to make regular, timely payments. This could include a variety of options, including:

• Automatic Online Payment: Some services can link to your checking account. This may work if you’re confident you’ll have enough in your account to cover costs.
• Color Coded Folders: Low-tech options like this allow you to see at a glance which bills are paid, unpaid and due soon.
• Digital Charts: Many computers and cell phones have programs that allow you to set reminders for yourself. Take advantage of them!
• Buddy System: If all else fails, enlist a friend: One of you is bound to remember when bill-paying time comes around each month.

But here’s the bottom line: use common sense and start living on less.

Are your bills out of control?  You may need to take serious action. Learn how filing bankruptcy may help.

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