Help

[sounderella]

Ok so last June I ended up having to have some emergency surgery but I didn't have any insurance. I ended up with a $6,000 bill that got taken down to like $5,000 as a self pay discount. I have been on a $10 a month payment plan with them since. I haven't paid more than that due to my credit cards. The hospital wasn't charging interest so I figured more should go to the c.cs. Anyways, their billing company called me today to make me aware that their older accounts (i.e mine) are all going to be transferred to another company next month and that they would settle 50% which would make the total like $2232.41.

My concern is, when it is switched to another company, they may not allow me to pay $10 a month because I know it's the company's decision. I don't have an emergency fund to cover this.....I may be able to scrounge some up (borrow) or maybe use a credit card (I'd prefer not this option) but at the same time I don't want the full amount to go to collections when the other company won't accept $10.

Help!

[ea1776]

Is the settlement only good if the 50% is paid in full?

What will happen if the 50% is not paid in full?

If it stays at the full amount with interest, I would do whatever you can to pay the 50% in full. Perhaps you could get a 6-month 0% CC and try to pay the CC down in a 6 month period.

It's hard though to devise a plan without knowing the full details of benefits/consequences of paying/not-paying settlement in full.

[jIM_Ohio]

pay half and be done

[sounderella]

Is the settlement only good if the 50% is paid in full?

What will happen if the 50% is not paid in full?

If it stays at the full amount with interest, I would do whatever you can to pay the 50% in full. Perhaps you could get a 6-month 0% CC and try to pay the CC down in a 6 month period.

It's hard though to devise a plan without knowing the full details of benefits/consequences of paying/not-paying settlement in full.

Yes the 50% needs to be paid in full. If not, nothing bad will happen from them...my concern is that the new company may not let me keep my payment plan and send me to collections for the total $4000 amount

[ea1776]

Then do everything you can to pay in full now.

You are getting a guaranteed 100% return by paying it in full, so even putting the 50% on a low-balance CC is better than letting it go to collections. Wherever the balance ends up, attack it with a vengeance and zap it asap.

[GoodBuyGirl]

I would pay it off in full with a low intrest credit card. Even paying intrest on the credit card would be cheaper than paying the total $4000.

[maat55]

I would borrow the money from a credit union or a bank. Sell anything you can or use some thing for colateral. The new company is getting this debt at pennies on the dollar and will settle with you later as well. They will first try to get the max, but will take less later. I would not put this on credit if you can advoid it.