Monday, January 12, 2009

Kicking Debt's Ass

Realizing that we aren't going to approved for a mortgage anytime soon has really been dragging me down. I keep picturing homes that are all ours- where we can paint, knock down walls, plant gardens, and have a bazillion dogs without ever having to ask permission. Sometimes I throw in a jewelry studio in a quaint little out building. Sometimes there's Alpacas, which I will groom and spin yarn from to feed my newest knitting obsession. Hey, fantasies don't have to be reasonable right? Especially when you're wallowing?

So, after shedding some tears, screaming in frustration, and being generally depressed, I'm finally ready to start kicking some ass. I'm finally ready to stop sniffling and start taking charge of things. If nothing else, I'm a planner, and I'll do my best to use all of my mega-planning skills to fix our credit and get us on track to getting us a mortgage.

Now, my bad credit debt isn't huge by any means. Actually, by all standards it's very manageable. Basically it's a accumulation of medical debts from when we were without insurance, and few random other crappies. So, in a move of completely faked bravery, I'm putting all of my debt out there for everyone to see, and tracking my progress paying it off through my blog. This will become a part of my motivation to keep things on track.

So, without further ado, here are my collection debts:

Mean Collector #1:
$453.78 - This is a phone bill that my ex left me with after calling me collect for about a month. The original bill was $605, but they agreed to settle with me for this amount with a payment of $75 per month. I think I can hack that.

Mean Collector #2:
$75- Medical
$107- Medical
$159- Medical

I asked if they could combine these into one account and accept payments. They said no. I asked if they would settle with me for less. They said no. Ass hats.

Mean Collector #3:
$427- Medical, for my daughter's lovely stitches she needed right after I moved to Maine and had no medical insurance. But I digress....
$105- Medical
$95- Medical
$95- Medical
$288- Medical
$137- Medical

These guys also refused to combine accounts and accept payments, or settle for a lesser amount. Gah.

So, the total amount of bad credit accounts I need to pay off is $1514.78. It's a big amount for me, but not too huge all things considered. I just have to take a big breath, bite the bullet, and start paying things off one by one. My goal is to pay off one bad debt per month minimum. This month won't happen, as we're still catching up from Christmas, but I'm ready to get it going in February.

In order to track my progress, I'm going to put a widget on my side bar to show what's been paid, and to beg for money :)

If anyone has any tips, or knows of any help available to pay off old medical bills, please share. In the meantime, I'm going to chisel away the best I can. Wish me luck!


Lillie said...


A tip I remember from reading some "get out of debt" book was to pay off your lowest bill first - so I guess that would be one of the $75 in your case - while paying the minimum on everything else. Then, the next month, roll that $75 you paid the last month into the next lowest bill until you get that one paid off. Keep going like that, adding more money when you can to the payments, paying off the lowest bills one by one.

I think the idea mostly helps mentally - seeing your debts completely paid off. But it does seem to be easier to get rid of the smallest ones first. At least the list itself gets smaller!

Michelle said...

Hi Sarcasta-Mom!
I think it's brave to put all your debt out there, for yourself (and others) to see, it makes you accountable in some ways for doing what you promised yourself, which is to pay them off one by one. I hate debt. I too have a mountain of it, like many other Americans. We can and will get through this!
This is your year to be debt-free!
Also, thanks for visiting my blog! :)

Alisha Wilson said...

That's nothing, add a zero to that and you will have my bad debt, although my credit score is excellent. GO figure.