pay medical collections or revolving account collections?

[Anonymous]

I need to know what I should pay. I have many medical collections and I have an old bill from AT&T and two credit cards that have been charged off as bad debt. Should I pay the medical collections or should I pay the AT&T collection and the 2 credit cards that have been charged off? It seems that I should pay the AT&T and the cc's. I would really like to pay all of my debts. They add up to $4,000 (including the medical bills). Also would it be smart to take out a personal loan from my bank to pay everything in collections? I really need some advice. Thank!

[LIGHTNIN]

Taking out a personal loan will cost alot in interest. My bank charges 17%, thats just making your debt even larger.

The money you pay in interest, could be paying down your debts.

How old are your collections?  Also do you know your states SOL?

SOL is the legal time limit a creditor can take  you to court and win.

If it were me, I would pay the debt that are within SOL.

You can do this, I came back from much worst. You are doing a good thing to start now, before your total amount grew much higher.

Knowledge is power. Live below your means and you never have to worry about debt again.

[Anonymous]

The two cc's were closed in 2006. The AT&T was reported a few months ago. I know the SOL in my state is 5 years for cc's. The medical bills are from 2007, 2008, 2009 and 2010.

[kcc]

It is my understanding SOL for  medical bills is 4 years in all states but check it out I'm not positive. Another thing you can do is check to see if CA'S are licensed in your state especially if you have changed states. If they are not licensed in your state they can't collect and you can file a complaint with your state if they contact you, at least that's how it works in my state.

[LIGHTNIN]

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@Anonymous wrote:

The two cc's were closed in 2006. The AT&T was reported a few months ago. I know the SOL in my state is 5 years for cc's. The medical bills are from 2007, 2008, 2009 and 2010.

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The DoFD is an important date to know, because it's the starting date, for your States SOL.

The DoFD is also used to calculate when an item will be removed from a CR.

I would start with the medical CA's and the CA that has the AT&T debt, because they are within SOL

If the DoFD is 2006 with the closed CC's, I would deal with them last because they are probably Passed SOL.

[LIGHTNIN]

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@kcc wrote:

It is my understanding SOL for  medical bills is 4 years in all states but check it out I'm not positive. Another thing you can do is check to see if CA'S are licensed in your state especially if you have changed states. If they are not licensed in your state they can't collect and you can file a complaint with your state if they contact you, at least that's how it works in my state.

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You are wise to question a SOL of 4yrs for medical debts.Some of these other credit forums spread incorrect information. I live in Tn and I know no such law about 4yr medical SOL,here in this state. If would be nice to know the source of this information.

That's why I love this site, you can ask were they found the info and they will tell you it's in the FDCPA,FCRA ,FACTA or the laws in your state.

[Anonymous]

Thank you for the advice! We are wanting to buy a home and I didn't know if we would be made to pay off the cc's. Thank you!

[LIGHTNIN]

It will be up to the lender on whether or not, they will ask you to pay off the old CC debt.

The CC debt is passed SOL, so I would guess they will not ask you to pay it,but I'm only guessing.

Buying a home is the biggest purchase you will ever make, so take you time and know what you want and don't want in a home.

Live below your means and always keep an emergency fund.

A emergency fund is very helpful in those emergencies,helping by not turning to a CC with interest or getting a loan. But if you use the fund, always replenish it, I put money in every month. It's the best advise my mother (now a retired reality broker) ever told me.

[Anonymous]

You have been very helpful! Thank you so much!