Paying Past Due Medical Bills

I had a baby and the portion of medical bills that I owe is over $8,000. I can afford only $20 payments. What can I do?

I recently had a baby and the portion of medical bills that I have to pay is well over $8,000 to various companies. I tried applying for assistance to pay the larger bills through the hospital and I was denied. So I tried to arrange $20.00 payments and I was told I had to pay at least $60.00, which would be a real stretch for me. So they said they have to turn these into a collection agency, is this true? I have always heard people say that as long as you make an effort to pay off medical bills that they you cannot be turned into a collection agency. I am also trying to buy a house and I don't want these bills on my credit report, I just think that it is crazy that they expect me to pay that much a month when I told them I cannot do that.

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Bill's Answer
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(8 Votes)

Updated: Sep 18, 2014

Mother With Baby| Medical Debt & Credit Score

I certainly applaud your efforts to repay these medical bills. Unfortunately, it is up to the creditor what they require in payments each month to prevent the account from going to collections. Technically, the bill is due in full at the time services are provided; any payment arrangement that the medical provider allows you to set up is at its discretion.

If you wish to prevent this account from going to collections, then you will need to make the payments required by the creditor. I understand that the $60 payments that they are demanding will be difficult for you to make, but since you are trying preserve your credit score so you can purchase a home, you may need to try to cut your expenses so you can make the payments required by the creditor. If you do not make the payments the hospital is demanding, they may turn this account over to a collection agency, which could have a negative impact on your credit rating. I encourage you to read the Bills.com personal budget guide, which may help you cut your expenses and make the payments being requested by the creditor.

Quick Tip

The Bills.com Debt Coach offers non-nonsense information about your debt relief options, and will give you the pros, cons, and costs for each.

You may want to consider this situation from the creditor’s point-of-view. If the creditor allowed you to make payments of $20 per month, it would take over 33 years for you to pay off this debt, not including interest. Even at $60, it will take over 11 years to pay off the bill, so the creditor is certainly giving you a fair amount of time to pay off your medical bills. I do not mean to minimize the hardship that these larger payments will cause you, but I simply wanted to let you know why the creditor is asking for more than $20 per month as payments on this debt.

Unfortunately, if you wish to keep these debts out of collections, you may have no choice but to negotiate a payment plan acceptable to the creditor. Hopefully, you can work these payments into your monthly budget. For a slightly different view of this issue, see the Bills.com resource If I Pay a Small Amount on My Debt, Can I Be Sued?.

I hope this information helps you Find. Learn. Save.

Best,

Bill

Bills.com

9 Comments

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  • 35x35
    Sep, 2010
    Johnson
    Another option can be asking friends and family for financial help. Even when you have insurance, medical bills can still be overwhelming. You might be surprised at how much loved ones, community/church members, etc. can make a difference. You can raise donations and share your situation online with different websites like www.gofundme.com/fundraising-ideas/help-with-medical-bills/
    0 Votes

  • BA
    Apr, 2010
    Bill
    Medical debt is unsecured, and as such is treated under the law in the same manner that credit card debt, payday loans, or deficiency balances are. Unsecured debt can be settled for less than the existing balance. See the Bills.com debt relief savings center to get a quote from pre-screened debt settlement firms.
    1 Votes

  • 35x35
    Apr, 2010
    Amanda
    I certainly understand where you are coming from; We were denied every kind of goverment and even non-goverment support (it's nice that I pay my taxes). I can say to an extent that the hospitals and doctors and all the various other expenses with having a child, have the right to demand payment. Unfortunetly, I do not think they understand being polite on the phone makes me want to try harder, not say 'screw you for not getting what I am saying'. The hospital alone wants $500 a month... basically a car payment for a really nice car I will not get. with all the money it takes to feed just our son let alone us, how on earth will we manage? It is a business, I get that. They are there to make money. But, when will there be a break in the system to help people who truly need it? My husband works full time with overtime at $8 an hour... he is an electrition for goodness sakes. But, we make too much money to get help. The credit cards they suggested would just put us in more debt with their 25% interest, and we were denied anyway. When is the system going to really help? I was treated horibly because I had insurance, when I am the type to pay all the medicaid people's bills? They get free bills. Nothing, nada, zilch!!! So I pay my bills and all the people who don't have to pay a dime...
    3 Votes

  • BA
    Jan, 2010
    Bill
    Medical bills are payable on performance. There is no legal requirement that medical service providers offer reasonable payment plans, although the smart ones do.
    0 Votes

  • RC
    Jan, 2010
    Ralph
    Recently a relative gave birth to a little girl who has severe heart defects that will require several surgeries over the next few years and will hopefully correct some of them. Since the birth they have been inundated with medical bills - even though they have insurance - the amounts being discussed are astronomical. They talked to the hospital financial office about setting up a payment schedule that they could afford without going into bankruptcy. But what disturbs me is that they are being told they have to repay everything in 12 months. this surprises me since when I was a child my mother underwent several back and heart surgeries and they were always allowed to setup a payment plan with the hospitals that required them to make payments on a regular basis without them going bankrupt. What has changed?
    2 Votes