The Debit Card Mistake That Cost Me $8,655

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Forgetting to update a debit or credit card can be a costly mistake for bills like insurance. See how I learned that the hard way when my dog got sick. 

When I lost my wallet at a roller-skating rink in December 2021, I did all the usual things: I ordered new credit cards and updated the card numbers for the bills I have on autopay.

Alas, there was one bill that I forgot about. I realized it seven months later at my dog’s veterinarian’s office. My rambunctious black mouth cur mix, Kermit, had been a tad less rambunctious than usual, so I took him in for bloodwork. The results showed a dangerously low white blood cell count.

As her staff called various emergency clinics to see if any could admit him for a blood transfusion that night, the vet warned me: Diagnosing and treating this ailment would be extraordinarily expensive.

“It’s OK,” I said. “I have pet insurance.”

I tried to log into the account. That’s when I discovered that the policy had been canceled. As I frantically searched my 300,000-plus unread emails, I saw that the pet insurance company had emailed me several times warning that the policy would be canceled if I didn’t update the payment information.

I’d avoided tears until that point. But as it hit me just how sick Kermit was — and that I may not have the money needed to treat what appeared to be a rare blood disorder because of my own dumb mistake — I burst into sobs.

How my mistake cost me $8,655

This isn’t a story that ends well. Kermit died just a few days later. He was only 5 or 6.

I had no idea how high the bill could climb as I drove Kermit from his regular vet to the emergency clinic that night. I had a decent emergency fund, but because of the uncertainty, I applied for CareCredit, a medical credit card.

I got approved for a $20,000 line of credit. I chose 12-month no-interest financing. But I knew that “no-interest” financing really meant deferred interest, which is where you get hit with interest on the entire amount you financed if there’s any remaining balance at the end of the promo period. So I vowed that I’d pay off the entire balance within the 12-month window.

In all, I would spend $10,367 on Kermit’s care in the days before he died. I’ll never regret spending that money, though. I know I gave him every chance he deserved.

My policy had a $750 pet insurance deductible and a reimbursement percentage of 90%, up to $15,000. In other words, had the policy been active, I would have paid the first $750 of that $10,367 bill, leaving $9,617. Then, the insurer would have covered 90% of the remaining $9,617, or $8,655.

When Kermit died a few days later, I was too grief-stricken to even think about the bill. But I’ll admit that when I started making the almost $1,000-per-month payments, it was hard knowing that I didn’t even have my dog to show for them.

I paid off $1,000 immediately, then about $5,500 over four months, mostly by taking on extra work. But after that, I decided I needed to move on, so I withdrew the remaining $3,100 and change from my emergency fund.

How I’ve organized my finances since then

Organization has always been a challenge for me, as you can guess by the fact that the pet insurance cancellation notices got buried in my hundreds of thousands of unread emails. Since then, I’ve created a new email address that I only use for bills so I can avoid such oversights moving forward.

I’ve also started tracking my expenses using the PocketGuard app. The app is pretty simple and breaks down your expenses in each category and reminds you of upcoming bill due dates. It’s easiest to use when you sync all your accounts because it can automatically detect recurring payments and send you alerts.

If I had to make this mistake, I’m lucky that it happened at a point when my personal finances were stable. Had this happened in my 20s, when my finances were in shambles, I wouldn’t have had credit or savings to turn to. I would have faced an agonizing choice as a result.

The experience reminded me of why I’ll always have pet insurance for any animal companion I have, as long as they’re insurable. About 1 in 3 pets need emergency vet care every year in the U.S., which often comes with exorbitant costs. I want any decision I make to be about my pet’s health and well-being instead of money.

On that note, two months after Kermit died, I went to my local Humane Society and adopted a three-legged mutt I named Abraham. I bought his pet insurance policy while I was still in the shelter’s office waiting for his microchip to be installed.

I give him his heartworm preventive medication on the first of every month. Then, I immediately log into his pet insurance account just for extra confirmation that my payment went through and his policy is in good standing.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Robin Hartill, CFP® has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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