HELP in trouble with medical loan!!!
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HELP in trouble with medical loan!!!
| Sat, 03-18-2006 - 11:58pm |
I'm not sure where to turn, but I really need some help, I don't know what to do! Here's my situation...
I had to take out a medical loan last summer for $10,000. I fell behind on the payments for 3 months because I had to pay out of pocket for some additional medical expenses. My monthly living expenses are just what I am making with enough to save a tiny bit, I've gone through all my savings, but I also have no other debt besides my car loan and the medical loan. If I hadn't fallen behind on the $500 a month payments I would be fine, but now they've sent it to collections! I've never been in this kind of situation so I'm not sure what it means...the letter I got says that the company is considering filing a lawsuit against me to seek a judgment to collect the entire loan which is about $8,500 and they want me to send a check for the whole amount, which I obviously can't do.
I'm going to call them on Monday, but all I can do is offer to make the minimum monthly payments, I just can't afford more than $500 a month. I shouldn't have any more big medical costs in the near future and should be able to make regular payments again and maybe over a couple months make up the payments I've missed. Has anyone had experiences with collection companies? I just don't know what to expect, I am praying that I can work this out. I am so stressed about it!
Thanks,
Samantha
I had to take out a medical loan last summer for $10,000. I fell behind on the payments for 3 months because I had to pay out of pocket for some additional medical expenses. My monthly living expenses are just what I am making with enough to save a tiny bit, I've gone through all my savings, but I also have no other debt besides my car loan and the medical loan. If I hadn't fallen behind on the $500 a month payments I would be fine, but now they've sent it to collections! I've never been in this kind of situation so I'm not sure what it means...the letter I got says that the company is considering filing a lawsuit against me to seek a judgment to collect the entire loan which is about $8,500 and they want me to send a check for the whole amount, which I obviously can't do.
I'm going to call them on Monday, but all I can do is offer to make the minimum monthly payments, I just can't afford more than $500 a month. I shouldn't have any more big medical costs in the near future and should be able to make regular payments again and maybe over a couple months make up the payments I've missed. Has anyone had experiences with collection companies? I just don't know what to expect, I am praying that I can work this out. I am so stressed about it!
Thanks,
Samantha
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Welcome to the board Samantha.
First let me say I am sorry you are so darn stressed out over this. Try to settle down and look at your options. Take a deep breath and let it out. You are going to be fine. Honest. That is the truth. This is a bill that you can work with and get a handle on. OK? Better? All right. Get a cup of tea and read on.
You could do one of three things:
1. You can call your creditor and see if they will take payments that are less than $500 per month.
2. If that fails to work out you could then schedule an appointment with a credit counseling service and see if they will have any more luck negotiating than you have. Be certain you check out the organization and make sure they are legitimate. There are a lot of wolves in sheeps clothing out there masquerading as credit counseling organizations that will cause you untold headaches, so do your homework. You can always check for feedback from the board before you sign the dotted line.
3. If that failss then schedule a free consultaton with an attorney who specializes in Chapter 13 Bankruptcy, which is a debt repayment program and that will ensure that your creditors will accept a monthly amount you can afford to pay, plus the creditors can not do anythimg more than accept payments until your debt is satisfied. Chapter 13 Bankruptcy will stop harassment, law suits, and other aggressive collection efforts when you have very little money left over to pay bills once your basic expenses are paid for. It is designed specifically for people in your situation who have very little money for expenses. Every year millions of individuals file Chapter 13 to repay their debts and over 50% of those who file do so because of medical related expenses.
Hope this helps. Let us know how you are doing ok?
Again, welcome to the board Samantha.
Carolyn
My two cents:
I pay multiple medical bills each month, $20 here, $20 there. I missed one payment for one month and got noticed that they were sending to collections. I think personally, it is a scare tactic. It demanded payment in full, etc.
I would write (not call) and tell them what you can do, lower payment, never miss, etc. and keep a copy of it. I did this and the next month got a notice that I had not paid and not contacted them. I wrote them again, copied my letter, and my cancelled check and was very nasty about them sending me a notice without the proper info.
My experience has been that as long as you are paying something every 30 days, that they won't send to collections. I recommend communicating in writing every month if you have to, even if you can't send $.
Hope this helps.