In Debt But Catching Up
Murphy visited Heather and now she must prioritize to get back on her debt payoff plan.
QUESTION: Heather and her husband have their baby emergency fund. He was in a car accident, and because he was the only income earner, they got behind on their bills since he was out of work for 3 months. They are current on the utilities but a month behind on the house. How do they get caught up?
ANSWER: What you need to do is prioritize. Food is first, and then utilities. No one else gets a dime until you are current with the house. Absolutely no one gets paid until you are current on the house. Once you are current on the house, get current on your car payment. Again, no one gets paid until the car is current. Once you have food, utilities, shelter and transportation covered, then just go down the list of what’s most important to you.