What to do with tax return?

[Aimeedyan]

Be sure and make arrangements with each of your medical bills. We constantly are struggling to pay medical bills as well - they never end it seems. However, be aware that some hospitals/medical providers do charge interest and will report you to the credit bureaus. The hospital I was admitted to twice last year will not work payments with you, nor lower your bill if you are paying cash. If you can't pay in full within 3 months, they sell your acct to a bank who then charges you interest to pay it off. We ended up taking a personal loan out to pay them off in full to save on interest. It was SO frustrating.

Most of my other medical debt has been willing to work out payments but even then, $10 here and $10 does add up. I feel for you on those issues. I had to keep a running list of medical bills, who I owed, what the payment was, and when it was due because I would misplace a bill and then end up in collections.

My thought would be to pay on credit cards, since you usually can work out a deal with medical collectors. But I do think it's GREAT advice to stick about $500 into an e-fund for unexpected expenses.

Good luck!

 

[DisneyMaMato8]

I work in the billing office of a large hospital. Every hospital that is statused as a non-for-profit hospital must maintain a certain % of "charity care". This % must be averaged each year to maintain the non-for-profit status. "Charity care" is normally based on income and % of outstanding medical bills. We do not give charity care, whether a complete write off or a discount on the outstanding balance, to patients who live beyond their means but to those who financial situations truly warrent it. Financial situation can change, such as lose of income due to taking care of a sick child, lose of job, and etc. Ask,... hospital "charity care/financial hardship" is often based on a higher income than that of the requirement necessary to qualify for state Medicaid. Do not be proud, or think you may not qualify, each discount could help you to reach your goal of paying off your medical bills. If you medical account is already at collections, you can ask the collection agency to send you the financial hardship forms. They have to follow the guidlines established by the hospital, as long as the bills have not been turned over to the legal department. I will work with our patients, but have a short tolorence for those who blame me for their policy choice. PS, normally, if you qualify, it will also work toward additional medical bills for the short-term future, usually the next 90 days. One application should cover all members of your family, children, spouse, self, for that hospital network (ER visits, therpy, x-rays, surgeries. etc). Good luck, your hospital should work with you. If you do not qualify, they should be able to combine and offer you no interest or a very low interest payment plan.

 

[littleshamrock]

I didn't read through all of the responses, but PLEASE call your medical providers and try to work out payments with them. They are happy to receive ANYTHING on these bills. I know of a few people (I have done this too) that have been able to pay $10-20 a month on $1000+ medical bills. I really think that you would be better paying off your credit card, as far as your credit report goes...

Good Luck!

 

[8 Ears]

Wow! Thank you for all the advice, info and well wishes!

Although it is several medical bills, it is only 1 credit card. Yes we did/do have insurance. Several of the bills are at the same agency.

Was not aware I could possibly have a note attached to our credit report, will chekc into that, thank you.

When we had our taxes done yesterday I did ask about the medical bills. We can not claim for 2007 as they were not paid in 2007. In 2008 we could if blah, blah, blah, we were told we did not be able to for various reasons.

I tend to think in black and white/all or nothing. Did not stop to think of options or compromises.

I do have another another question.

Someone stated to pay by money order, why is that? We would either have them take it right out of our account or send them a personal check. Is there something else I do not know or is that just their choice?

Thanks everyone! Feeling much better about getting this mess cleared up.

 

[jakenjess]

You've gotten some great advice here, just wanted to wish you luck in negotiating with your creditors and for a better 2008!

 

[kfeuer]

We would either have them take it right out of our account or send them a personal check.

Just wanted to caution you--Clark Howard (consumer advocate) advises to never, ever give your bank account information to collection agencies. You don't want them to have the power to take money out of your account that you didn't agree to (and they will try). I agree with the pp to negotiate, and get something in writing before you send any money.

I hope 2008 is a better year for your family, I really feel for you.

 

[Toby'sFriend]

Someone stated to pay by money order, why is that? We would either have them take it right out of our account or send them a personal check. Is there something else I do not know or is that just their choice?

no. do not give the collection agencies any hint of your checking account numbers. They will process an electronic check or take out way more than what you agreed to -- and then you will be stuck trying to get the money back from them which is nearly impossible.

Send a money order or a cashier's check.

Also, do not ever sign a document or letter that you send to them. Always just type your name. They have been known to lift signatures off of letters and imprint them on contracts agreeing to pay. Collection Agencies are famous for not playing nice.

 

[It's A Happy Day]

Another one here that says pay off the CC. Now the CC may already be cancelled as it is already in collections but if it isn't and you pay it off/come current, at least you would still have a CC to use in emergency situations. Not that I want you to fall back into the current situation but it can be difficult to be strapped financially and NOT have an emergency fund or CC to fall back on. IE: If you had car trouble and needed a tow, a new tire, etc. you would generally have to either have cash or a CC on hand to pay for such an expense. Medical expenses, they are generally more flexible about setting up minimal payment plans, waiving certain costs, etc. and I would call them to set up something.

I also agree you should take $500 from the refund and put it into a separate account marked for emergencies only - or better yet, get cash and lock it up where it is difficult to get to for emergencies ONLY. Depending on what the collection status is, I would be concerned about my check getting tagged for some type of withdrawal to pay debt (not sure if this could happen but I always think worst case). I had heard of someones savings being wiped out because the creditor somehow was able to take what the person had on record in the bank. It may have been back child support vs. CC debt though, again, I am not positive on that scenario, just remember reading/hearing something. Mattress money cannot be taken as it is not "on the books."

Good luck, I understand how stressful financial hardship can be and here's to a healthier 2008!

 

[chris1gill]

I have to agree with the CC suggestion, see if they will lower the balance and accept what you offer them. Also, apply for reduced care at the hospital. Depending on the hospital, you can have a pretty good income and still qualify for at least a 25% reduction for care, we had to do that years ago when we had medical bills and reduced our income by one due to the medical issues... even though our income was healthy we still qualified for the 25% discount which was a huge help at the time. This was many years ago, but I'd bet they still do the same thing....

In some states, medical bill's cannot be put against your credit report... you might want to look into that & your state's laws... in that case I'd pay the credit card immediately..

Good luck & hopefully you will have a much better 2008....

 

[8 Ears]

Thank you, kfeuer and Toby'sFriend I am just too trusting

 

[of the seas]

Have you looked at your FICO score recently to see if any of them are on there yet?

I would also say to pay of the credit card.Call and see if they will settle.

A medical bill will be tough on your credit score. My DH FICO score actually dropped 32 POINTS IN 1 MONTH due to the fact an overlooked medical bill that went in collections went on his credit report. We were trying to pay off alll our bills to get a house and we had the monthly credit monitoring. He had so many medical bills that we were dealing with (he actually fell too, off our roof) and one slipped by and went on our credit report.