# Looking at getting back on my feet after large medical bills



## tomwa (25 Apr 2010)

Age: *24*
Spouse’s/Partner's age: *N/A*

Annual gross income from employment or profession: *€85,000 - €4500/mo after tax*
Annual gross income of spouse: *N/A*

Type of employment: *Private Sector*

*Current living in rented property at €900 p/m*

*No other borrowings apart from credit card.*

*I usually make €10000 a year additionally from agricultural grants which
usually goes straight into the mortgage. These grants were not paid last year.*

Do you pay off your full credit card balance each month? *Minimum payment since January*
If not, what is the balance on your credit card? *6600*

Savings and investments: *Totally depleted after medical bills*

Do you have a pension scheme? *Company Defined Benefit*

Do you own any investment or other property? 
*Rented out old home. Value 190k, Mortgage remaining 250k, Tracker 1% over ECB
Rental Income €750, Mortgage €960*

Ages of children: *N/A*

Life insurance: *Only for Mortgage*

I've had a pretty unlucky year in regards to my health. I'm lying in bed at the moment recovering from my fifth and hopefully last surgery in 6 months.
Over this whole saga I've incurred significant out of pocket expenses for items the VHI would not cover. I've kept my reciepts and i'm doing up the paperwork to try to recover
a portion (circa €1000) from the VHI and other expenses against a MED1.
My savings are gone and my previously clear credit card now has €6600 on it. I also expect a further €3000 of medical expenses to come up between now and June.

I'm lucky enough to have an employer who has been very understanding and accommodating despite my joining the company only last year.
I've been told at my annual review that I will receive a second bonus in June of €5000. Also I'm due to be reimbursed for a business expense from last year of €3000 probably in May.
I hope to use these to pay off the credit card debt.

I'm also looking at moving back home in June as my father was recently taken ill and my parents have drastically reduced income since he was laid off. Commuting costs would be €400-500/mo if I were to do this.

I'm wondering whether any of you has any advice or suggestions as to whether I should be handling things differently, and whether I should build back up some emergency savings before getting rid of the credit card debt.


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## tenchi-fan (25 Apr 2010)

Honestly, you're not going to go hungry.
Pay off the credit card, don't pay it off- it doesn't make much difference. It's peanuts compared to your salary and grants.


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## niceoneted (25 Apr 2010)

Try and switch to a cc that offers an interest only period on it and you should be well able to clear the cc in that time frame. You have very good disposable income so should be fine. I know it can be tough after what you have been through but you are still very young and in a very health position financially.


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## tomwa (3 May 2010)

Thanks for the replies. I've always had savings to rely on and avoided debt as much
as possible. My job by it's nature is heavily performance based and due to the time
I've had to take off I feel naturally insecure and not having liquid assets behind me
to fall back on scares the bejesus out of me.


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## fizzelina (4 May 2010)

tenchi-fan said:


> Honestly, you're not going to go hungry.
> Pay off the credit card, don't pay it off- it doesn't make much difference. It's peanuts compared to your salary and grants.


 This sounds more bitter than helpful


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## tenchi-fan (4 May 2010)

fizzelina said:


> This sounds more bitter than helpful



Maybe a little, but I saw the original post as a bit... needless... my advice to the op is not to worry.

What do you want me to suggest?
Contact mabs. Rely on family or friends? Contact the bank and come up with a payment schedule?

The balance on the op's credit card is only €6600. I know people on minimum wage who have similar debts. If a safety net is important to the op (by saving for a few months), the interest on the credit card is negligible - probably less than €80 a month. The op might consider a credit union loan over a period of say 3 years if he doesn't like the idea of credit card debt (credit unions don't have the best rate of interest but they allow some flexibility)


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## dmos87 (8 May 2010)

The only advice I can give right now is to not worry so much - with a high salary like that it will only take you a few months to get back on your feet. I do feel your pain though, Im just after turning 23 and this year will be out of debt (yay!) for the first time. Its a huge weight and is always in the back of your mind. Cut corners where you can once your back on your feet - and start saving more, you can definitely afford to. 

For now, concentrate on your health.


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