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Hope’s Debt Update – December, 2024

Here we go again. My full time client exercised the 6 week cancellation clause in our contract last month. So my full time income ends the week before Christmas. Of course, he cancelled just before the paid holiday break I had negotiated.

My income was cut by a fourth this month. Therefore, my progress slows again. And the insecurity that always comes when these things happen over runs my mental health.

Here are the debt numbers as of this month. (Last month’s update is here.) Still progress but not where I wanted to be:

Debt Description	October, 2023 Total	Interest Rate	Minimum Payment	Current Total	Payoff Date (Est)
CC - Frontier	$3,857	29.99%	$130	$2,295	Jan, 2025
Dad - New Furnace	$2,600	0%	$0	$2,600
CC - USAA	$5,000	19.15%	$135	$3,750
CC - Sam's Club				$591	Jan, 2025
Student Loans	$22,121	2.875%	deferrment	$22,895	deferred til May, 2025
CC - Apple**	$500		Paid off every month	$0
CC - AMEX	$894	29.24%	$0	$0	Mar, 2024 - Closed
CC - Sams	$1,106	29.99%	$0	$0	April, 2024
Personal Loan #1	$2,500	0%	$0	$0	July, 2024
Personal Loan #2	$2,500	0%	$0	$0	August, 2024
CC - Wander	$1,630	29.24%	$0	$0	August, 2024 - Closed
CC - Amazon	$1,497	29.99%	$0	$0	September, 2024
Total	$44,206		$265	$32,131

New Debt

The Sam’s Club credit card has officially made a return, and here’s why. During my recent drive to Texas, it became painfully clear that I couldn’t put off getting new glasses any longer. Earlier this year, my daughters and I all had our eye exams, but I decided to hold off on purchasing new glasses to save money. That decision caught up with me—the drive was miserable.

As soon as I arrived in Texas, I headed straight to Sam’s Club and ordered two new pairs of glasses: one pair of progressive lenses for everyday use and another single-vision pair for computer work. For the first time, I decided to add transition lenses to my everyday glasses. I’d spent much of the drive wearing my old sunglasses, which are a couple of prescriptions outdated, so this seemed like a good compromise instead of buying a third pair. Fingers crossed the transition lenses work out!

Using my Sam’s credit/Plus membership, I was able to get 40% off the second pair of glasses. And no, I could not make do with a single pair, my eyes are that bad.

Work for 2025

A week after he cancelled our contract. We jumped on the phone and he explained that he’s wanting to re-organize his business and focus on partnering with firms, taking a piece of the profit versus just contract work. I get it. But man!

We went on to negotiate returning to a part time role for at least the first quarter of the year as he figures out how he wants to proceed. Took some pressure off, but man, I’m feeling all sorts of insecure again. I will have 11 days off at the end of this month to go heads down on formulating a plan. And then return to part time work with this company in January.

On the flip side, I’ve spent the last couple of weeks, standing up my consulting firm again, reaching out to old clients, and applying for contract work via Upwork. As I write this, I am preparing to meet with a potential new client here in Texas.

What I’m grateful for…it’s just me. Just me I have to be responsible for, feed, house. (Yes, I know I’m still helping Princess but overall, it’s just me.) That takes a lot of the pressure off.

I’ll keep you posted.

Hope

Hope is a resourceful, solutions-driven online business manager with over two decades of experience helping clients streamline operations, manage projects, and grow their businesses through digital marketing and technology.

But life has a way of rewriting your plans.

A year ago, Hope made the decision to move in with her aging parents full time – a season she wouldn’t trade, even as it came with its own financial and emotional weight. Earlier this year, she lost her mother, and is now walking the tender, disorienting path of grief while learning what “forward” looks like from here.

Hope came to the Blogging Away Debt community in 2015 as a single mom raising five foster and adoptive children. She’s written through job changes, financial setbacks, and the bittersweet transition to an empty nest. Her kids are finding their footing in the world now – and so is she.

Rooted in faith and fueled by the same perseverance she’s brought to every hard season, Hope is ready to face her finances with fresh eyes and an honest pen. She believes that clarity, courage, and community can change the trajectory of anyone’s story including her own.

She lives in Austin, TX with her dad, loves adventures with her dog Addie, and is figuring out, one step at a time, what this next chapter is meant to be.

Coverages and Plans to Look Into for Paying Off Medical Bills

by Semify

Paying off medical bills can be an overwhelming experience. From the costs associated with emergency room visits to the expenses of ongoing treatments, healthcare often comes with a hefty price tag. Fortunately, there are various forms of insurance coverage, financial assistance programs, and strategic planning tools that can help ease this burden. By understanding these options and learning how to effectively utilize them, individuals can better position themselves to navigate medical debt and maintain greater financial stability.

Understanding the Impact of Medical Debt

The consequences of high medical costs can be severe, forcing some individuals into dire financial situations. According to Statista, figures from 2022 indicate that about 370,685 personal bankruptcy cases were filed nationwide in the United States (Statista). Medical debt is frequently cited as a key contributor to these bankruptcies, highlighting the urgent need to explore payment solutions before healthcare bills become unmanageable.

Exploring Insurance Options

Acquiring suitable insurance coverage is a crucial step in alleviating future medical expenses. Many health insurance plans, whether obtained through employers, healthcare marketplaces, or private brokers, offer essential benefits that can help defray significant costs. For instance, certain auto policies provide Personal Injury Protection (PIP), which is designed to cover medical expenses resulting from accidents. Standard PIP benefits often include up to $15,000 in coverage for eligible medical bills for up to a year (common industry standards). Understanding these coverage limits and what conditions qualify is vital to ensuring timely, adequate financial relief after an unforeseen injury.

Considering Mental Health Coverage

Medical expenses aren’t just limited to physical ailments—mental health care is equally important. Securing comprehensive coverage that includes therapy sessions, psychiatric consultations, and necessary medications can dramatically lessen out-of-pocket spending. According to Harvard Medical School, about one-quarter of people worldwide grapple with some form of mental health challenge (Harvard Medical School). Ensuring that insurance plans or assistance programs also address mental health needs can safeguard both emotional well-being and financial security over the long term.

Alternative Financial Avenues

Beyond conventional insurance policies, many hospitals and clinics now offer extended payment plans. These arrangements break larger bills into manageable monthly installments, often with no interest attached. Taking advantage of such programs can help prevent overwhelming lump-sum payments and reduce the urgency of meeting strict payment deadlines. Additionally, it’s worth researching nonprofit organizations or charities associated with specific illnesses, as they sometimes provide grants or financial support to individuals in need of help covering specialized treatments.

Health Savings and Flexible Spending Accounts

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) offer another path toward proactive financial preparedness. By setting aside funds throughout the year specifically for health-related costs, patients can create a buffer against sudden medical expenses. Contributions to HSAs and FSAs often come with tax advantages, allowing individuals to stretch their money further. This approach fosters long-term stability, ensuring that when medical bills arise, there’s already a dedicated pool of resources to draw from.

Professional Assistance and Advocacy

Dealing with medical billing can be confusing, especially when facing complicated insurance claims, denied coverage, or opaque pricing structures. In these cases, seeking help from a medical billing advocate or a financial counselor can be invaluable. These professionals review itemized charges, identify potential errors, and negotiate with providers or insurers. By leveraging their expertise, patients stand a better chance of reducing their overall debt and achieving a more favorable financial outcome.

Establishing a Proactive Financial Approach

Approaching healthcare expenses with a long-term mindset can ultimately save considerable stress and money. From choosing the right insurance plans to exploring payment plans, HSAs, FSAs, and professional advocacy services, individuals have multiple avenues to lessen the weight of medical debt. By taking these steps before crises arise, people can create a financial safety net—one that allows them to focus on their health without losing their peace of mind.