Anyone have non-CC debt?

**amber1020** · 06-29-2006, 12:23 PM

Hi, I'm new and I am very interested in trying to get rid of debt. We would like to think about buying a house, but we would need assistance through our state housing department and we cannot apply for it until we have no open collections. Right now he have roughly $6000-7000 of debt. We have no credit cards, every single bit of it is medical or dental, but most is now owed to different collection agencies. We have a very tight budget and have not been making payments on any of it for the last year. I am working on starting up in child care and I would be making somehwere between $380 and $1000 a month. I would like to use the majority of that to start paying the debts. But, I have no idea where to start. Should I start with the small bills that can be paid in one payment? Make a list and just go down it? Is there any kind of strategy for paying non-credit card debt?

Thanks
Amber

**Drgnfly423** · 06-29-2006, 02:38 PM

There are a ton of way to tackle debt. I did start paying on the small ones first. That way you see some results fast. Then apply what you pay towards that one on to the next largest one, etc., etc. That is called a debt snowball.
I recommend that you read Debt Proof Living By Mary Hunt. It is usually at the Library. It is the book that really opened my eyes about debt and saving.
Good luck, and nice to "meet" you,

**ktboop1** · 06-29-2006, 03:48 PM

Amber~
Welcome to the village!

in 1996, I had $13,000 in medical bills from when I had an in home accident and broke my arm in 3 places!

All of the bills went to collection because I could only send $15 or $20 to each of them at first, each month. The most important thing is to communicate with them.

I went to Consumer Credit Counseling Services and they established a payment plan with each of the collection agencies. Once that plan was in place, and I made the scheduled payment every month, they stopped calling. Eventually, I could pay more. I paid the extra towards the smallest one first. Once that was paid off, I snow balled the amount up to the next bill....and so on and so on. I paid off every penny in a little under 4 years. At first I was embarrassed because they went to collection, but I did pay it and I never had to file bankruptcy, and now I do own a home, here in Wisconsin I might add...

It can be done! If you dont want to use a credit counseling service, I would suggest sending a plan in writing to each collection agency telling them when you will pay, and how much, and stick to it!

This is a great place to learn about snow balling your debt or squeeking out extra money to put on your bills. You can do this!!

**amber1020** · 06-29-2006, 04:01 PM

Thanks for the replies everyone, I think I will start working on an excel sheet with all my overdue bills and start paying the small ones off first and then start payments on the bigger ones. Now I have to keep my fingers crossed that everything works out and I start having some income so I can get going!
Amber

**Buckeye5** · 06-29-2006, 04:17 PM

Amber, welcome to the village and know that you are not alone in your financial situation, a lot of us are there orhave been there. go to www.daveramsey.com it will help also, and continue to browse the threads here, you will learn valuable information to help you with a beginning.

**Laurie in Bradenton** · 06-29-2006, 06:31 PM

Amber,

We are using the debtsnowball method for several debts. You get such a high when you pay off those little ones and roll the amount over to the next one. Its an excellent way to payoff debts and see your results.

Good Luck!
Laurie in Bradenton

**AmyBoz** · 06-29-2006, 08:09 PM

Amber, you've gotten some great advice here. Best of luck to you!

**Daisygirl** · 06-30-2006, 06:33 AM

Good luck, Amber. I am swimming with the sharks right now too. I know how it is to hear the phone ring and just cringe. (That is if you are receiving calls from bill collectors.) There just seems to be no way to have a polite conversation if you are telling them you simply do not have the money at that time.

My situation is improving bit by bit. I am doing what you are planning - paying off the smallest ones, then making payment arrangements with the bigger ones. I am also in the process of consolidating as much debt as I can into a second mortgage. Is something like that am option for you? It will take my monthly payments that I am struggling to meet from over $700 a month down to $120 a month. That seems a lot easier to pay extra on and still keep my utilities and other bills up to date.

Good luck! If I can do it you can do it!

**dolphin** · 07-01-2006, 09:08 PM

Amber, I'm working right along with you. Please know you aren't alone and everyone here is so supportive! I wish you lots of good luck with starting the new venture. Be sure to check out your area laws. Here you cannot have more than 4 children without a license.

**sunshine** · 07-02-2006, 10:09 AM

Hi Amber-- lots of us have huge medical bills (I started with over $130,000 in medical bills on my dd alone, then added in the medical bills for dh with his ALS, and now my cancer bills). . .

Just keep on paying, and eventually you'll see them dwindle and disappear. . and keep reading the threads here for advice. Look in the archives for some of the old threads too.