Debt Collections
I have had debts in collections for many years. I have had my wages garnished and money taken out of my banking account, and without my knowledge, it was going to happen. I have gotten close to paying most of it off. I have gone through a divorce where he filed bankruptcy to get out of paying his half of it and leaving me with all of it.
I know there are ways I could have not paid any of my collection but I do not believe in that. I aquired this debt so I should be the one to pay it. However collection agency are
In this post, I am going to explain my collection debts in more detail but as far as my husband’s I will not go into detail about his. All I will say for his is that the current balance as of date. is $41,000 and that is 7 accounts at one collection agency. I will also say 6 accounts are medical debt and 1 is other debt. If he ever decides he would not mind me sharing more details I will.
My Collection Pro is the next debt in our debt payoff plan. In November of 2023, we switched from the snowball payoff method to the avalanche payoff method. A simple descriptions of the methods would be the snowball method is when you pay the small debt amount off first then rollover payment from paid off debt to the next lowest debt amount. Avalanche is when you pay off the debt with the highest interest rate off first then roll that payment over to the next highest interest rate debt.
My collection pro debt is $13,000 so this is going to take some time. However some of the debt my ex-husband is also responsible for and he has been paying on also. I have 7 accounts at this agency I am also going to be using the snowball method. I am going to pay off the lowest debt amount first. That way I will not get as discouraged when the debt amount is taking forever to pay off.
So my debt is all medical debt. I have two other debt collection agency where I am making minimum payments. Collection Burue has an interest rate of 10% so its now second in line right now. However, because we pay that debt with our HSA it will be paid off before collection pro As of right the tentative payoff date is June 2026 so we will be able to roll that payment over collection pro. Also, his company contributes $1,000 each year and we get $300 for doing our yearly physicals. So $1,300 goes to that debt every January. My Crook County medical is $9,000 and has an interest rate of 7% so it is thrid in line to be paid. The minuim payment on that one is $75
My accounts in Collection Pro and the order paying them off
Medical A $330.23 Ex-husband is also responsible for
Medical B $381.16 Ex-husband is also responsible for
Medical C $431.50
Medical D $553.05
Medical E $2,229.7 Ex-husband is also responsible for
Medical F $4,760.16
Medical G $4,770.64 Ex-husband is also responsible for
Right now we have an automatic payment of $200 biweekly. So $400 monthly or $600 on months we have 3 checks. Of that $200 payment $25 goes to my accounts the other $175 goes to my husband’s accounts. I also make an extra payment to mine once a month from my paychecks of $75. We also have the rollover from paying off dental and ZuntaFi which is $90 a month. So $215 a month goes to this debt. Plus any extra we can do.
I also call them before I payoff an account to see if they will take a lower payoff amount. In fact I was able to pay one off for less this way in September. I will also be doing that for the other collection account so the HSA can start going to this debt also. The tentative pay off date for My Collections Pro is June 2026 but I am confident that we can have it paid off sooner then that.
