Scary, Scary Stuff: Our Debt Accounting

Debts We’ve Paid Off!



Credit Card Debt

Wow, I wish I could tell you I didn’t have this in my life.  But I did.  In my defense, a great deal of it is debt that I took on as part of my divorce, because I thought it was the right thing to do.  Looking back, it wasn’t fair, but that was then and this is now.

Balance 10/2016: $22,500 (original balance we’re working on attacking)

Balance 12/2016: $14,700 (after settling $13,400 for $6,000 and paying $1,100 to advisor plus $500 toward settlement in December, the first of 12 payments)

Balance 3/2017: $13,700.  I wish this was going down more quickly, but right now it’s not.  Between saving for the wedding and dealing with medical debts, we’re making slow but steady progress in this area.

Balance 8/2017: $2,000!!!  We’ve now completely resolved $9,322 in debt, knocking out one card completely.  The other card still has $2,000 owed; $500 each month from September through November.

Balance 11/2017: $0!!!

What We’re Working on Now



Medical Bills – His

Two heart attacks and now three heart surgeries in under a year have left us with medical bills to dig through and address!  They’re a huge administrative nightmare – it’s amazing how complicated this stuff can be!

Update 3/2017: $7,200.  We’ve definitely made progress, primarily in terms of resolving issues with insurance companies.  For example, there was a $582 bill that we’d been disputing for over a year that finally got corrected and ended up being $75.  There was the orthopedic surgery that we got charged for and had been automatically paid before we realized it was for a surgery he never had!  That’s now been refunded, thank goodness!


Medical Bills – Mine

These are fairly small, thank goodness, but there are a few from a hospitalization and surgery I had back in the spring of 2016.

Update 3/2017: $1,900. I reached a settlement on a $88 debt this month for $52.  I know, it’s a minor win, but I’m knocking them out one by one.

Update 12/2017: Still working our way through these.



Family Bills

This is the biggest portion of his debts, and it weighs on us!  We will tackle this as part of our first priority list.

Stage 2 Debts

These are things we’ve agreed are not a high priority to tackle first, either because of a low interest rate or due to a natural payoff date which isn’t that far away.  That’s not to say they’re not concerning (they are!), but that they are not part of our highest priority items to tackle.



Student Loans

Pushing through to an MBA upped my income-earning potential a lot – but it also upped my debts a lot!  While this is low on our overall priority list, because it’s a low interest rate and tax-deductible, it will be a relief to have it off the list.