I wonder what I should do with this $500?

[Food Lady]

I guess this is a praise story, a suck story, and an ask for advice.

So in July, as some of you remember, I was rear-ended and the other guy's insurance is USAA. I've been having a very hard time getting it settled on the medical bills. I've faxed whatever info they wanted and when I received a voicemail asking if I was going to continue treatment (so they could settle it if I wasn't) I called back. I got voicemail, as I usually do. I left a detailed message saying they only needed to pay the ambulance and ER bill and please contact me. Then...nothing. I had faxed in the stuff, so I waited. I got a second bill from the ER yesterday.

So I called USAA today and they have only received the ambulance bill, apparently, and also need me to sign off so they can pay. So I raised my voice a bit and said that I was "irritated" and explained about the phone calls. I wish I had been more calm, but I don't think I was sucky. I wasn't looking for anything but getting the hospital off my back, but the claims guy offered me extra money for the inconvenience. That was nice and I thanked him at the end, telling him I probably could've been more persisitent. He reiterated that they'd dropped the ball and we said our goodbyes and I was happy to have a plan (re-sending the ER bill today).

Now, I'd left a message the other day with the hospital billing dept. that I was sorry the ER bill wasn't being taken care of and I was going to call USAA again. A lady left a voicemail this morning saying there wasn't anything she could do on her end but ask me to make a payment. She was nice about it; I think she understands the situation and that I just wanted them to know this was going to be taken care of, but can't release me from responsibility. So I called back this afternoon out of courtesy to let them know I had just talked to the insurance. I called the number on my caller ID. The bill didn't pop up for the woman that answered (different voice). I needed billing for this newer bill, I realized, and this was collections. She was instantly on me about some other ER bills my insurance wouldn't pay. I can't make payments right now because I'm doing that with my primary care provider who will drop me if I don't. This hospital is going to have to come second. Anyway, she was on me about the bills and I told her I might be able to make a big chunk payment soon. She wanted to know how soon and when I said within a month, she was not happy with that for whatever reason (when other collectors have been satisfied), and not happy that I need to contact them later about payments (need to look at my budget for the last part of the year). Now, I know it's her job and she probably hates it, but I don't excuse what seemed like personal anger at me. She doesn't know me nor does she have the right to judge until she does. That right there might be the reason I decide the money from USAA goes to another entity.

I guess the advice part is what I should do with the $500. My savings is diminished. I owe on so many things, but I feel that either it should go as a payment on my credit line at the bank, the car repair bills, or one of the medical bills. These are all things I'm making on-time payments to, but knocking down one a bit would feel good. Or maybe it should go in savings for Jan-Feb, when I'm broke.

At any rate, I'm just frustrated with my bills, happy about unexpected money, and thankful to you all for "listening". Also, was I sucky? I hope not. Thanks for reading the wall o' text.

[Kittish]

Without having actually heard the conversations, can't really say if you were sucky or not, however, I've said before that being noticeably annoyed when speaking to some company rep about problems you're having with that company is NOT automatically sucky. Expressing frustration with the issue(s) you're having is not automatically sucky. It's all in how you do it, and if you can manage to make it clear that your ire is not directed at the person you're speaking with but at their employer.

As for what to do with extra money... if you're paying your bills on time now, and expect to be able to continue to do so, I'd stash the money back since you know NOW that you'll be having a bit of a crunch at the first of the year.

[Aethian]

Always have a emergency savings account, take care if your four walls, and with what ever is left pay your bills.

[Yfandes]

+1 on creating an emergency savings account of $1,000, then the basics (food, rent, utilities etc) then bills.

[strawbabies]

Have you talked to a lawyer about getting your bills from the accident paid by USAA?

My dad was in an accident last year, and ended up having something like $70,000 of medical bills. For some unknown reason, he decided to try to handle it with the at-fault driver's insurance company on his own. Their final offer was $13,900. Now no lawyer will take the case now because he screwed it up by giving out too much information to use against him.

[iradney]

Maybe put half into a safety net savings account, and put the other half towards the debt with the highest interest rate?

[Food Lady]

Have you talked to a lawyer about getting your bills from the accident paid by USAA?

My dad was in an accident last year, and ended up having something like $70,000 of medical bills. For some unknown reason, he decided to try to handle it with the at-fault driver's insurance company on his own. Their final offer was $13,900. Now no lawyer will take the case now because he screwed it up by giving out too much information to use against him.

Do you mean the old bills the lady in collections wanted me to make payments on? Those are from before, not related to the accident. Everything from this incident should be taken care of now that I've talked to USAA again. If not, I'll keep calling. The ambulance bill was paid today; all that's left are the hospital's ER charge and the bill from the individual doctor that treated me.

I can't pay the old bills for that hospital right now because I'm currently making payments to my regular clinic. The insurance I had last year was terrible, with a high deductible.

Always have a emergency savings account, take care if your four walls, and with what ever is left pay your bills.

+1 on creating an emergency savings account of $1,000, then the basics (food, rent, utilities etc) then bills.

Standard Dave Ramsey advice, and good advice.

[taxguykarl]

Standard Dave Ramsey advice, and good advice.

Indeed. If worst comes to worst, the OP did not mention any debt exempt from BK.

[SuckMyFuxkCustomers]

I'm the type of person who pays my bills before I do anything so I'd suggest that if you can pay anything off with your money, I'd do that first.

[Aethian]

I'm the type of person who pays my bills before I do anything so I'd suggest that if you can pay anything off with your money, I'd do that first.

Right but OP doesn't have any cushioning to fall back on, which is why a few of us recommended a emergency savings account.

[cindybubbles]

I wonder if there is Legal Aid where you live. Lawyers are expensive, and not all of them are the "you don't pay us until you win" kind.

[SuckMyFuxkCustomers]

Right but OP doesn't have any cushioning to fall back on, which is why a few of us recommended a emergency savings account.

Does OP really have the chance to save money when she's got so many pending bills?

[Indigo]

I also vote for a safety net savings account - especially if you know the beginning of the year is going to be tight. Better to use that to cover the tight times vs possibly going into debt further because you have nothing to fall back on.

[Seshat]

If having $500 at crunch time is likely to stop you having to go into an even higher interest debt, save it for crunch time.


As for the rest of the bills; take the time to do your best to make a neat, tidy budget document - I'm sure you either know how to do that or know which of us to PM - and seek out financial & legal assistance in your community.

The reason I'm saying to do the budget document is because with a budget, and an organised folder-o-paperwork, the financial/legal advice people will find it much easier to help you (than if you didn't have them).

(parenthesised part because my brain wouldn't let me do an 'easier' without a 'than'.)

The legal advice will be able to help you get funds from insurance or other places that may owe you. The financial advisor may be able to help you get a lower interest loan to pay off higher interest debts.

[Sapphire Silk]

Right but OP doesn't have any cushioning to fall back on, which is why a few of us recommended a emergency savings account.

Generally I would recommend the emergency savings account . . . IF the OP doesn't have a habit of dipping into it for anything but a true emergency.

If there's any chance it might be frittered away, pay off high interest debt to avoid racking up the interest charges.

Hospital debt can usually be put off for long periods of time unless you live in a state where they can charge you interest. If they can't charge interest, you TELL the hospital what you're willing to pay: $5 a month if that's all you can afford. As long as you're paying something, they can't touch you. They can harass you, but you just demand the calls stop and all communication be in writing . . . which you then ignore. So don't put the $500 to the hospital bills. Use it for savings or other bills that do charge interest.

And for gods sake don't tell anyone about the windfall, or everyone will have their hand out for a touch.