The Complete Guide to Prioritizing Bills During a Financial Crunch

Authored By: Community Financial Credit Union on 6/30/2020

If you are one of the millions of Americans on furlough—or just getting back to work—due to the coronavirus, you may be scrambling to cover your bills. Let’s take a look at what some financial experts are advising so you can make an informed decision about your finances going forward.

Triage your bills

Financial expert Clark Howard recommends putting your most basic needs, including food and shelter, before any other bills now. Make sure you can feed your family before using your limited resources for loan payments or credit card bills. Similarly, your family needs a place to live, so mortgage or rent payments should be next on your list.

Housing costs

On March 18, the President announced the Department of Housing and Urban Development (HUD) will immediately halt “all foreclosures and evictions” for 60 days.

Also, in early March, the Federal Housing Finance Agency offered payment forbearance to homeowners affected by COVID-19, allowing them to suspend mortgage payments up to 12 months. These loans account for approximately 66 percent of all home loans in America. They will eventually need to be covered, though conditions for repayment vary by lender.

Speak to your lender about your options before making a decision.

If you’re a renter, be open with your landlord. We’re all going through this unprecedented time together and they may be willing to work with you.

Paying for transportation

Missing an auto loan payment can mean risking repossession of your vehicle. This should put car payments next on your list of financial priorities. If meeting that monthly payment is impossible right now, it’s best to communicate with your lender and come up with a plan that is mutually agreeable to both parties.

Household bills

Utility and service bills should be paid on time each month, but for workers on furlough due to the coronavirus pandemic, these expenses may not even make it to their list of priorities.
Most states have outlawed utility shutoffs for now. Also, many providers are willing to work with their clients. Visit the websites of your providers or reach out to them by phone to see what kind of relief and financial considerations they’re offering consumers.

Unsecured debt

Unsecured debt includes credit cards, personal loans and any other loan that is not tied to a large asset. Clark urges financially struggling Americans to place these loans at the bottom of their list of financial priorities for now. At the same time, he reminds borrowers that missing out on a monthly loan payment can have a long-term negative impact on a credit score.

Here, too, consumers are advised to communicate with their lenders about their current financial realities. Credit card companies and lenders are often willing to extend payment deadlines, lower the APR on a line of credit or a loan, waive a late fee or occasionally allow consumers to skip a payment without penalty.


Community Financial Credit Union is here to help members affected by COVID-19 (Coronavirus). Several options are available for members who have been negatively impacted and we will work with you to provide assistance during this challenging time.  If you or your household has been negatively impacted by this virus and are seeking a personalized solution, please call our Member Contact Center at (877)937-2328 to discuss your situation. We’re here to help!


Your Turn:How are you prioritizing your bills during the pandemic? Share your tips with us in the comments.



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