Author Topic: Piling HSA Reimbursements onto credit card bills?  (Read 859 times)

draculawyer

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Piling HSA Reimbursements onto credit card bills?
« on: July 24, 2018, 08:03:56 PM »
I have wracked up $15k on two credit cards, partially due to my own lack of common sense and partially due to an emergency surgery and medical issues last year and the year before.  My efforts now are focused on paying the cards and then tackling my only other debt, a student loan. If I continue at my current rapid pace of paying them down, the cards will be paid off by June 2019.

This year I find myself with fewer medical woes and about $400 in my HSA, an amount which grows by about $140 every biweekly pay period. I canít decide if I should save the HSA up to my $2,000 deductible, my $6,500 out-of-pocket max, or keep reimbursing myself through the HSA to pay off the credit cards. The previous, totally unexpected  surgery has made me gun shy about draining the HSA, but I also have an emergency fund of $1,500 that is never touched. I have about $4,000 in reimbursable expenses that I could (eventually) withdraw from the HSA and hypothetically throw at the credit cards. Can anyone offer any advice, or has anyone been in a similar position?

katsiki

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #1 on: July 24, 2018, 09:53:43 PM »
Are  you paying interest on the CC debt?

draculawyer

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #2 on: July 25, 2018, 07:21:59 AM »
Are  you paying interest on the CC debt?

Yes, CC 1 is $4,000 and 22% interest and CC 2 is $11,000 and 20% interest.

Sibley

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #3 on: July 25, 2018, 08:09:48 AM »
20%!!!! You have a hair on fire debt emergency. Holy crap. First, try to lower those rates. Call the cc companies and ask. Consider balance transfers to promo rates. Etc. Second, slash your budget to the bone and pay off that debt.

katsiki

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #4 on: July 25, 2018, 10:26:30 AM »
Sibley nailed it.  Another option may be lending club or prosper depending on what CC companies will do on rate.  You can probably get 6-9% from LC depending on your credit score.

draculawyer

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #5 on: July 25, 2018, 11:36:35 AM »
I'm aware of all that and, as I said, I'm paying off the cards as quickly as possible. I'm more looking for advice on what I specifically asked in the OP.

affordablehousing

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #6 on: July 25, 2018, 11:46:52 AM »
If you can earn more than 20% interest in your HSA account, keep the money in the account, otherwise pay off your bills with all money available, including an HSA account? Why are you waiting? Do it now!!!!!!!!!!!

soccerluvof4

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Re: Piling HSA Reimbursements onto credit card bills?
« Reply #7 on: July 25, 2018, 12:29:42 PM »
People answered your questions in your OP. Dont drop or stop contributing to HSA ! get rid of those insane interest rates.