Medical bills and the debt snow ball
In a recent Dave Ramsey show, a gentlemen described a situation in which his daughter has disabilities and is requiring medical treatment. God bless him! This is not uncommon for many families today and can cause a lot of financial stress.
Even though his medical bills don’t have interest, he is receiving new bills on a regular basis. Dave related by saying, “as quick as one gets paid off another one appears.”
How to budget reoccurring medical bills
The approach to dealing with these types of expenses is to make them a part of the monthly budget so they don’t become debt. For example, if the bills are estimated to be $3000 per year, divide by 12 and set aside $250 per month to make the payments.
It slows down the debt snow ball, but Dave says “you are admitting in your budget the reality of the situation.” You may be guessing the amount of the medical bills, but it is an estimate. You know it’s going to be a regular occurring expense and you have to pay it.
Can you relate to this situation? How have you handled medical expenses such as the ones described in this post as part of your monthly budget?
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