Every debt collector’s job is to convince you to pay its debts first. It is critical that you make your own decision as to which debt has the highest priority. In many cases, the collector contacting you most aggressively is often collecting on a low priority debt, such as for a credit card or a hospital bill. Do not let them pressure you into paying on a debt if it does not make the most financial sense for you and your family.

            If you are behind on your bills, this almost certainly ends up on your credit record. You cannot stop this, short of always being current on your bills. Nevertheless, do not prioritize a particular bill first just because a collector is threatening to ruin your credit record.

            By the time a collection agency is threatening you about your credit report, your report will almost certainly include the fact that the debt is delinquent and has been turned over for collection. The damage to your credit score has already happened. Paying now will not do much to improve your credit rating and failing to pay will not do much more damage.

            Many collectors will also threaten to take legal action to enforce the debt. A good number of these threats to sue are not carried out. Even if they are, it may be years before you are actually sued.

            It can be hard to predict whether a particular creditor will actually sue on a past-due debt. How aggressively a collection agency threatens suit is no indication whether the creditor will actually sue, even if the threat appears to come from an attorney.

            The feeling that some creditors are more entitled to repayment than others should rarely be a factor in deciding which debts to pay first. Giving up your home or your car to pay a credit card bill is probably not a good economic decision. If a creditor is sympathetic or has been flexible in the past, it is more likely to be patient as you work out your financial problems now, especially in light of the COVID-19 pandemic.

            Financial problems can cause embarrassment, panic, and stress. The pressure can also put stress on relationships and take a toll at work. When making difficult choices associated with your financial problems, be aware of these emotional pressures and think about how they impact your decision-making.

            Whatever course you choose, be aware of the additional stress you may be feeling and seek help when needed so that your long-term financial security can be maintained.