Conquering Our Debt: A Candid Look at Our Financial Journey

Money talk can be a taboo subject, but I believe in being open and honest about our struggles. As a family, we've faced hardships and made some poor financial decisions, leading to a significant amount of debt. Let's break down the numbers:

- Medical debt from a car accident in May 2020: $18,890.09

- Credit card debt from building our credit and home repairs: $1,307.47

- Money owed to family during tough times: $2,510.00

- Miscellaneous debt, including 401K loans and a previous purchase to build credit: $3,219.09

- Collections, including unpaid debts from a past divorce: $70,378.98

- Student loans from my recently completed Bachelor's degree: $93,373.61

- Our mortgage, which we are proud to have: $177,248.48

Grand Total: $366,927.72

Let's break down the how we got here:

Medical Debt

The main reason for the medical debt is On May 23, 2020, my three children and I were in a car accident. Thankfully my children were not injured at all. However, the car rolled over my arm breaking it in five places, and fractured my neck. At the time I did not have medical insurance and I was driving my mother’s car which was only covered by liability. The medical bills for the surgery and recovery accumulated quickly. Thankfully, I was able to have hospital bills written off through the financial assistance program or this amount would be about $50,000 more.

Credit Card Debt

We only have two credit cards. One we used to help raise our credit score so we could buy our home. The other is a Home Depot card we use for home repairs when needed.

Money Owed to Family

Like many, we have gone through some rough times and thankfully we have family who graciously helped us out in hard times.

Miscellaneous Debt

In 2020 we took out 401K loans to help with hard times. When we were building our credit to purchase our home we bought an entertainment center at Arron’s because they report to credit. We have $480 left to pay for that.

Collections

Having so much in collections is something I have been ashamed of and has stopped me from sharing our debt journey. But here it is. Part of the collections stemmed from a divorce. I have been divorced for over 11 years now and he has yet to pay his part of collections.

Student Loans

In October of 2021, I finally graduated with a Bachelor's in Library Science and Media. My college journey took a while and I was not smart and took out more loans than I needed to.

Mortgage

This debt I am excited about. Owning a home seemed like something I may never be able to do because of my poor money choices and the amount of debt we have. My brother-in-law became a realtor and introduced us to an amazing loan officer to help build our credit fast. Then my brother-in-law helped us find our perfect home.

But we're not letting this debt define us. We have a plan in place, starting with sticking to a budget and paying down our debts each month. To save money this holiday season, we're using the Fetch Rewards app, a simple way to earn gift cards by scanning receipts. Our goal is to save $250 in gift cards for our five children, and we're already on our way. Plus, using code HF98JN with the referral link will earn you 2,000 rewards.