Credit Card Question

[lovemylife]

Thanks in advance.

I know this may sound like a very dumb question, but I figured you guys would be able to help me. I have never carried a CC balance before, but now have to since DH was in the hospital and that extra money for the CC is now paying the hospital. My question is how much can I expect in finance charges per month on $1300 at 13% interest? For some reason, I can't seem to figure it out. I know that they charge on the initial balance and not what I have left to pay (right?). I would not have had enough even if I didn't pay the medical bills, so I figured get those bills out of the way, since I was going to have the same finance charge.
Could you please help?

 

[johnGorski]

Your monthly intrest charges would be 14.08
this is how you get that.
you take your balance 1300, x .13 "this is your 13% apr" divide by 12 "months" you get your monthly finance charge.

 

[ctinct]

Thanks in advance.

I know this may sound like a very dumb question, but I figured you guys would be able to help me. I have never carried a CC balance before, but now have to since DH was in the hospital and that extra money for the CC is now paying the hospital. My question is how much can I expect in finance charges per month on $1300 at 13% interest? For some reason, I can't seem to figure it out. I know that they charge on the initial balance and not what I have left to pay (right?). I would not have had enough even if I didn't pay the medical bills, so I figured get those bills out of the way, since I was going to have the same finance charge.
Could you please help?

Actually, as your balance goes down, so will your interest. They sort of do base it on what you have left to pay. They usually base it in your average daily balance for the month, so the earlier in the cycle you make your payment, the smaller your average balance will be for the next month. They won't charge you interest on the entire $1300 until you pay it off.

 

[swilshire]

Hospitals will typically work out a payment plan with you and I doubt there would be any interest. I'd pay off the credit cards and pay the hospital as I could.

Sheila

 

[lovemylife]

Thank you for responding to this thread. The hospital bills are ones that are nickle and diming us, if you KWIM. I hate to have a little cc balance left, it will be about $400 or so, but I would rather have 1 bill than 10 different bills to different places. I figurered if I could pay those, than it is less to worry about, too.

 

[fkj2]

Thank you for responding to this thread. The hospital bills are ones that are nickle and diming us, if you KWIM. I hate to have a little cc balance left, it will be about $400 or so, but I would rather have 1 bill than 10 different bills to different places. I figurered if I could pay those, than it is less to worry about, too.

Swilshire is right; you may be able to set up a payment plan with the hospital at a predetermined monthly amount and not pay interest.

I understand your desire for convenience and consistency, but your plan hedges on your cc company NOT raising your interest rate. By working with the hospital, you can probably maintain the convenience and consistency without paying additional costs.

 

[mrsklamc]

Hospitals will typically work out a payment plan with you and I doubt there would be any interest. I'd pay off the credit cards and pay the hospital as I could.

Sheila

What she said. Hospitals are happy to get paid AT ALL so work out a deal with them.

 

[lovemylife]

OP here, I understand what you are all saying about the hospital with no interest and I will do that with them, but right now I have a $50 ambulance bill, $20 radiology bill, $200 er dr bill, etc. Those I got out of the way. When I get the BIG hospital bill, that will be done in payments with them.
Thanks again.

 

[disneysteve]

right now I have a $50 ambulance bill, $20 radiology bill, $200 er dr bill, etc. Those I got out of the way. When I get the BIG hospital bill, that will be done in payments with them.

Make sure that you don't pay ANY medical bills, especially the hospital bill, without first getting an itemized copy of the bill. Review it item by item and check for errors. Common errors are things getting double billed and getting billed for tests or procedures that were never actually done. Before paying any balance not covered by insurance, verify with the insurance company that the charges aren't covered. Sometimes, a claim gets rejected because it was filed incorrectly and just needs to be resubmitted properly to get it paid.

My wife had surgery twice last month. We called Friday to get the itemized bill for the first procedure. The 2nd one hasn't been submitted yet so we're waiting on that. For her last surgery a couple of years ago, I found a $1,000 error on her bill.

Finally, ask the hospital for a discount. I got a 35% discount last time just by calling and asking (but I did have to pay in full to get the discount).

 

[StephMK]

Make sure that you don't pay ANY medical bills, especially the hospital bill, without first getting an itemized copy of the bill. Review it item by item and check for errors. Common errors are things getting double billed and getting billed for tests or procedures that were never actually done. Before paying any balance not covered by insurance, verify with the insurance company that the charges aren't covered. Sometimes, a claim gets rejected because it was filed incorrectly and just needs to be resubmitted properly to get it paid.

My wife had surgery twice last month. We called Friday to get the itemized bill for the first procedure. The 2nd one hasn't been submitted yet so we're waiting on that. For her last surgery a couple of years ago, I found a $1,000 error on her bill.

Finally, ask the hospital for a discount. I got a 35% discount last time just by calling and asking (but I did have to pay in full to get the discount).

Thank you so much for posting that! I have been stressed about bills between $500-700 from an accident this summer. DS fell in a rest stop & had to get 3 stitches in his chin at the ER. It seems incredibly high & way above our co-pay & I think our deductible has been met so I'll give them a call tomorrow.

 

[disneysteve]

I have been stressed about bills between $500-700 from an accident this summer. DS fell in a rest stop & had to get 3 stitches in his chin at the ER. It seems incredibly high & way above our co-pay & I think our deductible has been met so I'll give them a call tomorrow.

Actually $500-700 doesn't sound high for an ER visit with stitches but if you've met your deductible then you definitely need to call and find out why your insurance didn't cover the rest of the bill.

 

[disney1990]

Make sure that you don't pay ANY medical bills, especially the hospital bill, without first getting an itemized copy of the bill. Review it item by item and check for errors. Common errors are things getting double billed and getting billed for tests or procedures that were never actually done. Before paying any balance not covered by insurance, verify with the insurance company that the charges aren't covered. Sometimes, a claim gets rejected because it was filed incorrectly and just needs to be resubmitted properly to get it paid.

My wife had surgery twice last month. We called Friday to get the itemized bill for the first procedure. The 2nd one hasn't been submitted yet so we're waiting on that. For her last surgery a couple of years ago, I found a $1,000 error on her bill.

Finally, ask the hospital for a discount. I got a 35% discount last time just by calling and asking (but I did have to pay in full to get the discount).

Also, question, any charge that your insurance company refuses to pay. If they refuse to pay it a second time, put it in writing and question it again. Insurance companies expect most people to just pay the bill, and most people do. If you question the non-payment several times, often times the insurance company will reconsider and actually pay the charges.