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Easy come, easy go… tax refund disappearing fast!

Today I have been on the phone most of the day working my way through a list of debts that has appeared on my wife’s credit report she pulled recently and paid off $2,657.19, but sadly that’s is only half of it, we still have over $2,000 of medical debt and another $1,200 in motoring fines that my wife accrued back in Texas in 2004, we only found out about these in the last few months.

For the most part it was a good experience, interacting with the representatives was pleasant enough but all the time I am handing over debit card details, I am thinking what gadgets I could spend that amount of money on, not that I need more gadgets. Paying debts is such a hollow task as you effectively get nothing but a confirmation number for handing over a large chunk of money!

We already have a payment plan to pay the remaining $2,000 medical debt, we are paying $75 per month which should see the debt paid in 2 1/4 years. We could have paid off the remainder of the debt with this return but they weren’t willing to give us a large enough settlement break to do so, $150 off is not a big enough incentive to pay off the remainder of the account now, so we will stick with the payment plan! Now we just have that single debt; having paid off nine smaller debts!

I just have to remind myself that paying off these debts is building for our future, but that’s hard to see when $2,600 is disappearing with the chance of taking a family break away for a few days vanishing with it! Having to pay nearly $2,500 back to the IRS hasn’t helped, but getting more in last years refund did help us buy a better car after our car was written off in November 2010.

Also paying off these debts will mean we can keep more of the insurance settlement when we finally receive it, which maybe some time away as it’s looking likely that we will have to file a law suit to recover our costs caused by the accident, which means more money in the lawyers pocket!

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