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You re out of work or have reduced hours If you don t have a consistent income coming in right now, you should first use this check to cover essential bills and any debt obligations, says Westlin. Essentials include things like food, housing, utilities and insurance. As for debt, such as a credit card balance or car payment, it s important to pay at least the minimum on your balance. Otherwise, you may owe fees and extra interest, and your credit score could be negatively impacted. If you have money left over after covering your necessities and minimum payments, start chipping away at the rest of your debts, especially anything with a high interest rate. Ideally, you want to make payments in full every month to avoid being in debt longer and racking up additional interest. ....