While the order may not matter if you can pay all the balances, it will matter if you fall short one month. Say you pay off the balances on your credit cards first, then find you can't make the minimum on your house payment or monthly rent. You've put the roof over your head at risk.

Try this: "Pay for living expenses first," says Cunningham. After the house or rent payment, necessities such as utilities, groceries and medical care should top the priority list. Next comes the car payment -- you want to avoid repossession, obviously. On down the line, secured loans and co-signed debts follow in importance, then unsecured loans and credit cards. "Ideally, everyone can get paid, but if a choice has to be made, paying in this order will do a better job of keeping the home life stable."

Since bills often aren't due in this order, you'll need to work out a payment schedule and set aside money from each paycheck.

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