Who Do You Pay When You Have No Money?

In this day and age it is not uncommon to run into money problems. In fact, with foreclosure rates on homes and repossessions of autos on an all time high, more and more people are looking at their finances trying to figure out who do they pay when they just don’t have enough money to pay everyone.

You need to evaluate what your debts are, and what types of debts they are. There are unsecured vs. secured debts and different things will happen depending on the type they are. If they are a secured debt like a mortgage or an auto loan, the creditors will attempt to just collect the debt first, and then they will take back whatever collateral is against the loan. If it is a mortgage, they will take your home; if an auto loan, they will take your car.

Unsecured debts are debts like credit cards where there is nothing against the debt, and therefore nothing to take. They will call and harass you; sometimes they will sue you, but depending on what state you live in there is very little they can do to you besides put a judgment against you. If you declare bankruptcy you will usually wipe out most if not all of your debt.

However, before you even consider paying car loans and mortgages, and credit cards, you must first meet your basic needs. If you can pay for food, child support, electric, essentially the basics - then you can start paying on the other items next. It is great to pay car loans so that you get to keep your car, but if you aren’t eating, what good is a car?

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