Tackling bills can feel overwhelming. Here is a basic overview.

Highest priority debts

These debts should be addressed first because creditors can take steps to seize your property if they go unpaid. High-priority debts include:

• Unpaid taxes,
• Court judgments,
• Child support, and
• Secured debts, such as your mortgage and car loan.

High priority debts

These are unsecured debts, meaning your property is not at risk unless the creditor sues you and gets a judgment. However, these debts may grow quickly due to high interest rates, late fees, and penalties.

Lower priority debts

These are also unsecured debts, but they tend to have lower interest rates and fees compared to high-priority debts. Your property is not at risk unless the creditor sues you and gets a judgment. Medical debt is a lower-priority debt.

💡 Keep in mind: A hospital cannot refuse to provide emergency medical care because you owe it money.