Friday, February 15, 2008

Debt Review and Plan

My debt breaks down into two categories.

I have $24,946.00 in charged off debt from a couple of years ago. I need to pay it off, but for now, it's not the highest priority. I'm not sure where 20% of this debt came from, my suspicion is that it's a duplicate listing. I'll be sending a letter to find out where that came from. More than half the rest came from my losing my apartment and car when I had the major medical problems. The remaining portion is from credit card debt, some of which I accumulated from standard consumer purchases (I did spend somewhat frivolously) and some from trying to pay medical bills that insurance didn't cover. All totaled, there are between 8-9 oustanding accounts (depending on the one I'm unsure of the origin.)

I also have $40,391.31 in hospital/medical bills from medical care given to my daughter (I have insurance, but it doesn't cover dependents, the adoptive parents would have done so if she had survived.)

My goal is to be completely debt free by 9/5/2014. I don't think it will necessarily take that long, but I want to enter my 30s without debt.

So how am I getting there? First, I am contacting all the hospitals and doctors about the medical bills. They have all sent me forms that I am filling out to request assistance, reductions, and payment plans. I am also including a letter explaining my situation. Second, I will verify and validate all the consumer debt - confirm how much I owe and to whom. This will allow me to form a completely accurate and up to date calculation of what I owe. Third, I will begin putting at least $500 to paying off debt every month starting in March. I expect to be able to pay off 4 of the 8 or 9 consumer debt accounts within 2 months. I am hoping between working with the hospitals and paying off those small debts, I will reduce my debt to $30,000.


  1. Sounds like a good plan! I hope it all works out! You are way too young to be this much in the hole.

    Thanks for writing to me, let me know if there is any more info you need:)

  2. Like several of the commenters on your blog so far, I found you via WhiteCoat.
    I just wanted to wish you the very best. You are a strong woman!

  3. "My goal is to be completely debt free by 9/5/2014. I don't think it will necessarily take that long, but I want to enter my 30s without debt."

    That is an excellent goal! People can tend to underestimate how long it will take & then when all is not going to plan, give up!

    You obviously have a plan set out & i'll definately be checking back to see if there are any tips I can pick up.

    Good luck!

  4. You have obviously had a bad run of things & like many people, ended up in debt through unforseen circumstances. You have done what many haven't though - you have decided to something about it!

    Well done and good luck!