Dear Dave,
I recently experienced a medical emergency and unexpected hospital stay. I’m about halfway through Baby Step 2, and I’m paying off my debts using the debt snowball system. I have good insurance, but should I put Baby Step 2 on hold for now due to all the hospital bills?
Gerard
Paying back your debt when you have a medical emergency
Dear Gerard,
That’s exactly what you should do. I’m sorry to hear about your health issues, but at the same time, I hope you’ll make sure you’re only pressing the pause button on Baby Step 2. I’m talking about temporarily stopping the debt snowball and making only minimum payments on all non-mortgage debt for now. Can you manage that?
Things like this can be expensive, but they’re part of life. At the same time, taking care of these kinds of issues doesn’t have to mean giving up on gaining control of your finances. Emergency issues, especially medical emergencies, come first.
How a medical emergency impacts your debt repayment plan
Then, go back and pick up where you left off when things are better, and finish knocking out your other debt by restarting your debt snowball.
After that, I’ve got a feeling you’ll have the motivation to fully fund your emergency fund in Baby Step 3 all the way up to three to six months of expenses.
God bless you, friend. Keep your head up, and take good care of yourself while you’re recovering. You can do this!
— Dave
The post Dave Ramsey says: How do medical emergencies impact your plan to pay off your debt? appeared first on KTAR.
