Paying Off Pregnancy Debt

Unfortunately, going into debt for fertility testing or treatment is not uncommon. Depending on insurance coverage, the cause of infertility, and the treatments necessary, out of pocket costs can range from a low of $100 to over $25,000. Couples who go through the IVF treatment process may rack of debts into the tens of thousands.

The best thing to do is to have a payback plan decided before you start borrowing.

So whether you’ve already accrued the debts, or are in the planning stages of your treatment, the following tips will help you create a realistic payback plan.

Make a Budget That Includes Your New Realities

One of the first steps of creating a payback plan is putting together a budget. This requires looking at all your income, bills and expenses, figuring out what you can decrease and what will stay the same, and then looking at what’s left over for you to pay off your debts.

Make sure you consider an upcoming pregnancy, birth, or adoption completion when figuring out your pay back plan.

I know it’s hard to imagine now, but if treatments or adoption are successful, paying back your debts may get more complicated.

For example, if you have a high risk pregnancy, you may need to cut back at work or even stop working completely. The adoption may also include unexpected expenses, like last minute travel and time off work.

Pregnancy and birth itself also cost money. Copays for pregnancy well-checks, childbirth classes, a doula, and other birth related expenses.

After the baby arrives, there will be more questions to consider.

Like do you plan to put your baby into day care or stay home with her? Can family help? Will you work from home or stop working when the baby is young? And for how long? How will this change your income and expenses?

The answers to these questions will affect your debt payment plan.If you can pay all or most of the debts back before the baby comes, you’ll be much better off. If that’s possible, do it!

Watch Out for Shopping Therapy

If you deal with difficult emotions by shopping, now more than ever you need to find new ways to cope with stress.

Stress can come from not only failed treatment, but also successful treatment.

Unfairly, but commonly, the stress and struggle of infertility carries on even after you conceive, and sometimes even after you have the baby.

Spend Carefully on New Baby Expenses

Your excitement may lead to unnecessary spending. Many baby expenses can be avoided or at least lowered. For example, most new nursery expenses are totally extra.If you have a baby shower, put on your wish list items you actually need. Don’t be ashamed to request diapers and basic clothing!

You can also check out consignment shops for clothing and baby supplies, or ask friends and family with toddler or preschool age kids if they might lend or give you their baby things.

Claim Tax Deductions for Medical Expenses or Adoption

There are tax deductions you can take on out-of-pocket medical expenses, if they exceed a certain percentage of your income. This can include fertility treatments.There are also deductions for adoption expenses!Be sure to talk to an accountant, who is familiar with the laws and can help you file properly.

Carefully Consider IVF Refund Payments into Your Budget

IVF refund (or shared risk) programs will give you a partial refund if treatments are unsuccessful. It’s important to note that even programs offering a “100% refund” aren’t really 100%. Medications, for example, are rarely covered, and they can be quite expensive.

Before you start a program like this, go over with your fertility clinic exactly what will be refunded and what won’t. This way you can have a better idea of the debts you may face.

Also, if you were lucky enough to receive a fertility grant, be aware that their rules may require you to pay the grant back if you receive a refund.

In other words, if your refund owes you $15,000, but you received a grant for $5,000, the grant will get receive the refund money first, and only what’s left will go to you.A note of warning: don’t assume your IVF treatment will fail!

Pay Back Debts with Possible Penalties First

You may have a combination of debts, from credit cards to 401K hardship loans to even medical credit loans. What should you pay back first?If you borrowed against your 401K, there may be penalties for not paying the loan quickly. Defaulting on a 401K loan can accrue harsh financial penalties.

If you took out a medical loan, you may be severely penalized if you miss a payment. Also, the interest rate may skyrocket after a set period of time.Be sure to prioritize debts like these first to avoid penalties.