Debt can become a crushing presence in your life. The resulting stress is overwhelming when you simply cannot afford to make your payments. Running the numbers over and over again doesn’t help; the math never changes. Something has to give. Prioritizing which bills to pay first is difficult, but these tips should point you in the right direction.
Secured Versus Unsecured Debt
To understand which bill should be paid off first it is important to know the differences between types of debt. There are two basic forms, secured and unsecured. The fundamental distinction between the two is that property is used as collateral for a secured loan. Unsecured debt is not directly attached to property. In most cases, you will want to pay off secured debt first.
The property used as collateral