Essential or Nonessential?
Some debts straddle the line between essential and nonessential. Not paying will not cause severe consequences in your personal life, but it could prove painful nonetheless. In deciding whether or not to pay these debts, consider your relationship with the creditor and whether the creditor has initiated collection efforts. Some of these debts include: Auto insurance. In some states, you can lose your driver’s license if you drive without insurance. In California, you cannot even register your car without proof of insurance. Medical insurance or bills. Especially if you are currently under a physician’s care, you will want to continue making these payments. In addition, if you have medical insurance through work and lose your job, you will probably be able to keep your insurance coverage for 36 months, but you, not your former employer, will have to pay for it. If you let it lapse, you may have difficulty getting new insurance. It is almost always easier to continue insurance than to re
