advice on paying a debt

[rigz]

kinda messed up here. got a medical bill and for whatever reasons (procrastination, busy life, forgot, etc) i completely forgot to pay it. now it went to collections. no excuses - should have paid it, didnt. but i want to.

never having dealt with them before, my questions are:

1) if i want to pay the bill, is calling the medical department a waste of time? have they now sold the debt and are out of the picture?

2) if i deal with the collection agency, can I give them my credit card number or is that not safe? i dont want them to keep charging my card over the stated amount.

3) do i need to get a letter from them in writing stating that if i pay this bill in full, that its over and they wont come after me in the future for anything else?

(#2 and #3 I got from listening to dave ramsey)

has anyone dealt with collection agencies before? anything else i need to consider before fixing this problem? thanks in advance.

[creditcardfree]

I personally have not dealt with collection agencies, but I would call the medical department. Like you said...might not be able to help if debt is sold. It just doesn't hurt to call and get clear advice from them on where the debt stands.

I would only pay with a money order, or a checking account that only has that amount in it.

I would request the letter Dave Ramsey advises.

Good for you paying your debts...even those you forgot!

[rigz]

I personally have not dealt with collection agencies, but I would call the medical department. Like you said...might not be able to help if debt is sold. It just doesn't hurt to call and get clear advice from them on where the debt stands.

I would only pay with a money order, or a checking account that only has that amount in it.

I would request the letter Dave Ramsey advises.

Good for you paying your debts...even those you forgot!

thanks for the suggestions. ill call the medical department first and see what they say.

could I pay with my credit card then change the number immediately after they bill me?

any idea what the letter should state in it for legal purposes? simply "if i pay it in full, they can never come after me again"? something like that?

[creditcardfree]

I'm not sure they will take a credit card, but yes, you could request the card number be changed by your credit company.

I tried to look for a sample letter on Dave Ramsey and was able to find it. I would look around online to see if there are suggested wording. In my opinion, it should say something like "For $X, this debt will be considered paid in full." I don't know about the 'can't come after you again' part. However, legally, I would keep a copy of the letter you receive and send back, as well as a copy of the money order or credit card statement. If it were ever be an issue legally, you would have proof of the debt being paid.

[disneysteve]

I would not pay with a credit card. Use a money order or cashier's check only. Don't give them anything that can be tied to you in any way.

[creditcardfree]

I tend to agree with Steve, not to use a credit card.

I would look at this site for letter examples that may apply to your situation.

[rigz]

thanks for all the suggestions.

I have a feeling dealing with these guys is going to be annoying but its what i get for messing this up. lesson learned: just pay the bills on time!

[disneysteve]

I have a feeling dealing with these guys is going to be annoying

It really shouldn't be that bad if you are prepared to pay the bill in full. The problems you always hear about (like on Dave Ramsey's show) arise when people don't have the money to pay or are trying to negotiate a lower settlement.

In the past, there were a couple of times that a bill of mine ended up in collections for one reason or another and I never had any issues when I just sent them the full payment. Never heard from them again.

[rigz]

It really shouldn't be that bad if you are prepared to pay the bill in full. The problems you always hear about (like on Dave Ramsey's show) arise when people don't have the money to pay or are trying to negotiate a lower settlement.

In the past, there were a couple of times that a bill of mine ended up in collections for one reason or another and I never had any issues when I just sent them the full payment. Never heard from them again.

thanks again.

and since you are in the medical field yourself, do you know if this is going to negatively impact me in the future in terms of getting medical insurance and/or care?

or once i pay it off, is all forgiven and forgotten?

[LizfromtheBronx]

thanks again.

and since you are in the medical field yourself, do you know if this is going to negatively impact me in the future in terms of getting medical insurance and/or care?

or once i pay it off, is all forgiven and forgotten?

Not to hijack, but I can say from experience that even while I've had an outstanding bill with a medical institution, they've never denied me treatment. Perhaps if it got really bad, and it was an individual provider, they may deny treatment, but not in a larger sense.

[disneysteve]

Not to hijack, but I can say from experience that even while I've had an outstanding bill with a medical institution, they've never denied me treatment. Perhaps if it got really bad, and it was an individual provider, they may deny treatment, but not in a larger sense.

I agree. An individual provider may decline to see you if you owe them a large sum but other than that, it shouldn't have any effect.

[rigz]

thanks again - would my insurance ever decide to not cover me in the future as well for any procedures? can they even do that?

[disneysteve]

thanks again - would my insurance ever decide to not cover me in the future as well for any procedures? can they even do that?

Whether or not you've paid your medical bills (other than your insurance premiums) would have no bearing on your insurance coverage. I don't think they would even have any way of knowing if you owed a doctor or hospital money. So no, I don't think the two things are related in any way.

[TBH]

I am dealing with this issue right now, except in my case I didn't receive the bill because they sent it to the wrong address and billed the wrong insurance company. By the time I heard about it, it was already in collections. I tried and tried to get the hospital to re-bill my insurance, and finally gave up and paid the collection agency because it was only about $150. Then, a few months later, I got a call from a different collection agency. The hospital sold the bill a second time. This is a huge reputable university hospital in a major city. I am now wrangling with the second collection agency. I've sent them proof I already paid the bill twice with no luck. So frustrating.

I did pay the first collection agency with my credit card because I didn't know that might be a problem, and it has not been an issue.

[Eagle]

thanks again.

and since you are in the medical field yourself, do you know if this is going to negatively impact me in the future in terms of getting medical insurance and/or care?

or once i pay it off, is all forgiven and forgotten?

It shouldn't affect your medical insurance/care.

A collection account will not be emmediately forgiven or forgotten regarding your credit history. I believe collection accounts will stay on your credit report for 7 years from the date the account fist became past due.