fbpx
:::: MENU ::::

Not a Good Day Financially

by

Today I sent out over $1,000 to pay for taxes that we owed. I also initiated a payment plan with the IRS and opted to have $250 automatically withdrawn monthly from our account to pay for the remaining balance. It’s not fun making things right, but I do feel better getting it resolved. Once I know the total amount due (once penalties and interest are added on) I will update our debt total.

That’s how the day started.

Then, in the mail I received a bill for the laboratory and ultrasound portion of my miscarriage. I cannot believe that what I had done cost over $1,000. I already called to get a detailed billing statement so I can audit each charge and make sure it is right. There is good news, though…my health insurance partially covered it (I was worried because my plan doesn’t cover prenatal care). The bad news is that we still owe our 30% so that’s about $360 that we don’t have at the moment.

We don’t have it because I paid as much as I could towards the tax debt and pretty much bled our checking account dry. I also pulled from our savings account and our new balance is showing on the right hand side. I left some money in there in case we need it for an emergency. I also want to go through and double check my check register and make sure I’m not missing anything because we are really cutting things close.

Overall, I feel like I really have to rethink a lot of things on a personal level and a financial level. Lately things have stalled for us financially and I have to figure out why.

Reader Question – Were Our Minimum Payments Ever More than Our Income?

by

A while ago, I asked if anyone had questions for me. Here’s one from The Money Wars:

“I’m just getting started at getting out of debt after a lot of mistakes I made right after graduating. And I was wondering was there ever a point where your income was less than the minimum payments of all your credit cards?”

To the best of my memory, there was never a point where our minimum payments were more than our income. But there were points where our income covered our payments and our main bills (rent and utilities) and nothing else.

When that happened, things like groceries, diapers and gas went on our credit cards. It feels like you are barely treading water when that happens. You pay money to have your debt go down, but you turn around and charge more on your card. Thinking back to how I felt back then, I do not want to go back there ever again.

If anyone else has any questions, feel free to ask 🙂