How to Prioritize Debt During Job Loss
When cash flow is limited, not all debts should be treated equally. The priority order should protect your essential needs first: housing (mortgage or rent), utilities, food, then transportation if needed for job searching. After essentials, prioritize debts by the severity of consequences for non-payment.
Student loans offer income-driven repayment and deferment options — contact your servicer immediately. Credit card companies may offer hardship programs with reduced interest or minimum payments. Medical bills are often the most negotiable and are rarely reported to credit bureaus if you communicate proactively and set up a payment plan. Contact every creditor before missing a payment — most have programs for documented financial hardship.