Trying to pay off medical bills in collection...

[an_aurora]

I have about $7000 in medical bills in collections, in 6 different accounts ranging from $135-3000. I want to raise my credit score so I've been researching and found that it's possible to negotiate with collection agencies, where if I pay the bills they would agree to remove the item completely from my credit report. Well the collection agency is insisting they can't do that and now my accounts have accrued "interest, taxes and fees" and now the smallest one is $220 .

So what do I do? Do I just suck it up and pay the whole amount, just to boost my score up a little? And would it even be worth it anyway? These accounts are all from July 2004, so they will disappear soon anyway, but I'd rather get them paid now if it will help out my score.

[jess_paez]

im not an expert, but i believe even if you pay it off it will stay in collections, but instead show a zero balance. i'd personally not pay a penny on it and wait for it to get off your record, because i don't believe it will boost your score.

[Satori]

Even if you pay them it won't help your score, actually paying them will make your score drop since it makes the debt looks newer then it is and makes it take longer to come off your report. Unless they agree to remove it and you get that in writing I would not pay. Check out www.creditbords.com forums, awesome people who can help you fix this

[Thystle]

You can ask for a "paid for deletion", but they don't have to agree to it. If they do don't send in any money until you get an agreement in writing from them... incase they don't hold up to their end of the bargain.

Creditboards is a good resource. Alot of the advice ends up being to pay the original creditor too and not the collection agency. YOu can read alot of medical post on that board!

[an_aurora]

Originally Posted by Satori

Even if you pay them it won't help your score, actually paying them will make your score drop since it makes the debt looks newer then it is and makes it take longer to come off your report. Unless they agree to remove it and you get that in writing I would not pay. Check out www.creditbords.com forums, awesome people who can help you fix this

I have been browsing there, but it's all way over my head.

And I did find that Obama passed a law or something in 2009 that stops your score from dropping when you pay off a collection bill (the whole "new activity" thing).

[Satori]

Originally Posted by an_aurora

I have been browsing there, but it's all way over my head.

And I did find that Obama passed a law or something in 2009 that stops your score from dropping when you pay off a collection bill (the whole "new activity" thing).

Its pretty confusing at first but just start at the beginning for repairing your credit and go from there. It took me a few days to start understanding it but once I did I took my credit score from the 500 range to over 700 in about 4 months and got everything off my credit including some ugly medical ones. Of course it got all messed up when child #2 came along with a lot of special needs so I need to do it again but trust me, its worth it to spend the time reading and figuring it out.

[an_aurora]

Originally Posted by Satori

Its pretty confusing at first but just start at the beginning for repairing your credit and go from there. It took me a few days to start understanding it but once I did I took my credit score from the 500 range to over 700 in about 4 months and got everything off my credit including some ugly medical ones. Of course it got all messed up when child #2 came along with a lot of special needs so I need to do it again but trust me, its worth it to spend the time reading and figuring it out.

So paying your credit accounts raised your credit score?

[Satori]

Originally Posted by an_aurora

So paying your credit accounts raised your credit score?

umm, no. I have paid in the past and it just was another nail in the coffin. Read, you can probably get everything off your report if there from 2004. Just read, read, read! What ever you do, don't pay unless you want it on there another 7 years and I betcha there past the SOL so you can tell the collection to shove it

[an_aurora]

Originally Posted by Satori

umm, no. I have paid in the past and it just was another nail in the coffin. Read, you can probably get everything off your report if there from 2004. Just read, read, read! What ever you do, don't pay unless you want it on there another 7 years and I betcha there past the SOL so you can tell the collection to shove it

How would I get them off my report? I'm not sure which type of debt medical debt is considered, but in AK the SOL for written & oral contracts is 6 years, and promissory note & open-ended accts is 3 years. And what happens if I am past the SOL? I don't have to pay, right, but it's still on my credit report.

[Satori]

Originally Posted by an_aurora

How would I get them off my report? I'm not sure which type of debt medical debt is considered, but in AK the SOL for written & oral contracts is 6 years, and promissory note & open-ended accts is 3 years. And what happens if I am past the SOL? I don't have to pay, right, but it's still on my credit report.

Thats why I'm saying, READ, READ, READ You will get all those questions answered along with the new ones that are going to pop up as you learn. This is one of those "if you give a man a fish.." kinda things. Just telling you won't help you, you have to learn the ins and outs by reading the boards and I also found this site http://mix6.com/credit/ really helpful when I first started out.

[an_aurora]

Thanks

[Satori]

Originally Posted by an_aurora

Thanks

Your welcome, I know I probably frustrated you but trust me, you will get far more out of it if you do the reading rather then my just giving you answers

[an_aurora]

Ok, I revisited creditboards. I have never felt so stupid in my life. I guess I'll just wait for a couple years when the collection accounts are deleted from my credit reports

[Satori]

Originally Posted by an_aurora

Ok, I revisited creditboards. I have never felt so stupid in my life. I guess I'll just wait for a couple years when the collection accounts are deleted from my credit reports

Don't give up so easy, I was hopelessly lost for a couple WEEKS when I started. How about starting from here http://www.creditboards.com/forums/i...p?showforum=15

[nataliachick7]

I am really interested in how NOT paying the debt off will help, as i am in the same situation.
I do not have the time to sit and read through the boards, as Im a student, a mother, and I work.
Can someone just explain to me why you should not pay the debts and why it wont improve your score? I have a few from like 2005-2006.

[Satori]

Originally Posted by nataliachick7

I am really interested in how NOT paying the debt off will help, as i am in the same situation.
I do not have the time to sit and read through the boards, as Im a student, a mother, and I work.
Can someone just explain to me why you should not pay the debts and why it wont improve your score? I have a few from like 2005-2006.

Your credit already took the hit when it went on the report, paying it will just get it marked "paid" which will not improve your score and will often lower your score since it will cause activity on the account and make it fresher which hits the score harder. Unless you plan on making a major purchase like a house in the next couple of years I would not worry about getting them marked paid (bankers will actually look at the report and look for paid vs unpaid, most others are just looking at the score). You will just do more damage to your report rather then improving it. Screwed up I know but that's how the system works, the most recent activity is what drags your score down, stuff that's a few years old isn't really impacting the score as much as you might think.

[nataliachick7]

Thank you. We actually do want to try to buy our first home soon, so i guess for me, i would need to pay it off.

[Satori]

Originally Posted by nataliachick7

Thank you. We actually do want to try to buy our first home soon, so i guess for me, i would need to pay it off.

I would attempt getting it removed long before paying and if its past the SOL the bank may not even pay much attention to it. You could also sit down with a bank and have them look at your credit and see what they say.

[an_aurora]

Originally Posted by nataliachick7

I am really interested in how NOT paying the debt off will help, as i am in the same situation.
I do not have the time to sit and read through the boards, as Im a student, a mother, and I work.
Can someone just explain to me why you should not pay the debts and why it wont improve your score? I have a few from like 2005-2006.

I hear you! That's the trouble I am having too...I have tons of papers to read for school; I really don't have time to figure all this out!

Originally Posted by Satori

Your credit already took the hit when it went on the report, paying it will just get it marked "paid" which will not improve your score and will often lower your score since it will cause activity on the account and make it fresher which hits the score harder. Unless you plan on making a major purchase like a house in the next couple of years I would not worry about getting them marked paid (bankers will actually look at the report and look for paid vs unpaid, most others are just looking at the score). You will just do more damage to your report rather then improving it. Screwed up I know but that's how the system works, the most recent activity is what drags your score down, stuff that's a few years old isn't really impacting the score as much as you might think.

But I have read that having recent activity (ie paying the bill) doesn't negatively effect your score anymore. I think as of May 2009?

Originally Posted by nataliachick7

Thank you. We actually do want to try to buy our first home soon, so i guess for me, i would need to pay it off.

That's what we are going for too; I just need to raise my score by 20 points. I have an account I just found from T-Mobile, whom I have never had an account with!! Hopefully getting that removed will help.

Originally Posted by Satori

I would attempt getting it removed long before paying and if its past the SOL the bank may not even pay much attention to it. You could also sit down with a bank and have them look at your credit and see what they say.

Right, and that's what I want to know....how to get it removed...I was hoping to send full payment in exchange for getting it removed but the collection agency said they can't (which, gathering from the creditboards, is a common lie).

[Satori]

Originally Posted by an_aurora

I hear you! That's the trouble I am having too...I have tons of papers to read for school; I really don't have time to figure all this out!



But I have read that having recent activity (ie paying the bill) doesn't negatively effect your score anymore. I think as of May 2009?



That's what we are going for too; I just need to raise my score by 20 points. I have an account I just found from T-Mobile, whom I have never had an account with!! Hopefully getting that removed will help.



Right, and that's what I want to know....how to get it removed...I was hoping to send full payment in exchange for getting it removed but the collection agency said they can't (which, gathering from the creditboards, is a common lie).

You demand validation (NOT verification, important distinction) from the collection agency and dispute with the CB is the easiest way.