The best bad financial decisions...

If you only had enough money to pay your mortgage or your car loan, which would you pay? Unfortunately, many Americans are faced with making what amounts to this type of "best bad decision" when it comes to their finances in these tough economic times.

While it's never wise to neglect any type of debt or payment obligation, there are money moves that will have a less negative impact than others. USAA's certified financial planners are advising cash-strapped consumers with these types of dilemmas every day, and we thought this would make a timely topic for your readers. For example, which should you pay?

* Mortgage or car loan? Late or missed payments on a mortgage will haunt a consumer indefinitely and affect their ability to secure credit in the future, so consumers always should make mortgages a top priority.

* Health insurance bill or life insurance bill? Health insurance is the non-negotiable right answer, since health issues have immediate financial implications for a family.

* Phone bill or electric bill? As we enter the winter months, having heat and electricity are more vital than having phone service. Some consumers may want to consider using a pre-paid cell phone as their main phone to manage costs.

There also are a number of other "best bad decisions" that consumers may soon face, such as:

* Take money out of a retirement account or pay bills with credit cards?

* Take out a payday loan or use a pawn shop?

* Pay property taxes or income taxes?

And perhaps the toughest dilemma of all: What if a consumer can afford only a loan payment or a credit card payment -- but they're both with the same bank?

If you're interested in pursuing this story angle, I'd like to put you in touch with June Walbert or JJ Montanaro, Certified Financial Planners with USAA. June and JJ have more than 30 years of financial planning experience combined, and can speak to the advice they give members who are making tough financial choices such as these. They are also both lieutenant colonels in the Army Reserve and know the financial challenges our military members face every day.

You can see more of USAA personal finance advice in a recent webinar: https://www.usaa.com/inet/ent_utils/McStaticPages?key=2008_10_Retirement_Webinar.