topic Re: I have become very ill and need advice! in Credit Cards

I have become very ill and need advice!

egzen75 — Thu, 13 Aug 2015 21:31:34 GMT

I have become bedridden with a serious illness. I am unable to work and must apply for dissability. My last tax return showed income over $100,000. I have put myself in serious credit card debt paying for medical treatments that were out of network. I have the following cards and balances:

AMEX Cash $15,000 of $22,000

Chase Sapphire $14,000 of $24,000

B of A $15,000 of $20,000

Best Buy Store Card $0 of $10,000

Best Buy Visa $0 of $20,000

Capital One $1500 of $5000ided

Because I realized that I might not recieve any disability for as long as 18 months, I decided to open some new credit card accts.

Discover $3400

Chase Freedom $5500

Barclaycard $10,000

Citi Double Cash $4300

Ok so I'm thinking abuot trying to take a Prosper loan of $35,000 for medical and living expenses. Please understand that I am in a major crisis and unabl to get out of bed. I am thnking about transfering balances to max out these new cards and their 0% APR to save money. Will this hurt my score? Should I let all these new cards report with 0 balances or go ahead and do balance transfers? Will the Prosper loan be easier to get (will my score be higher) if I leave these new cards with 0 balances or does it not matter? This is very complicated and scary, I'm hoping for some good advice. I've also heard of Upstart for personal loans. Anyone have a better company for the personal loan?

Thanks in advance!

Re: I have become very ill and need advice!

Anonymous — Thu, 13 Aug 2015 21:37:41 GMT

Is there any chance you have a 401k that you could take a loan from? Although I'm not sure how that would work if your're no longer working.

Re: I have become very ill and need advice!

Anonymous — Thu, 13 Aug 2015 21:39:50 GMT

@egzen75 wrote:
I have become bedridden with a serious illness. I am unable to work and must apply for dissability. My last tax return showed income over $100,000. I have put myself in serious credit card debt paying for medical treatments that were out of network. I have the following cards and balances:

AMEX Cash $15,000 of $22,000
Chase Sapphire $14,000 of $24,000
B of A $15,000 of $20,000
Best Buy Store Card $0 of $10,000
Best Buy Visa $0 of $20,000
Capital One $1500 of $5000ided

Because I realized that I might not recieve any disability for as long as 18 months, I decided to open some new credit card accts.

Discover $3400
Chase Freedom $5500
Barclaycard $10,000
Citi Double Cash $4300

Ok so I'm thinking abuot trying to take a Prosper loan of $35,000 for medical and living expenses. Please understand that I am in a major crisis and unabl to get out of bed. I am thnking about transfering balances to max out these new cards and their 0% APR to save money. Will this hurt my score? Should I let all these new cards report with 0 balances or go ahead and do balance transfers? Will the Prosper loan be easier to get (will my score be higher) if I leave these new cards with 0 balances or does it not matter? This is very complicated and scary, I'm hoping for some good advice. I've also heard of Upstart for personal loans. Anyone have a better company for the personal loan?

Thanks in advance!

Your scores are probably already hurting from the utilization you are at already. Also, If you start transfering balances I would not be surprised if AmEx, Chase, and BoA started balance chasing you immediately. You need to decide wether your score is more important, or paying less interest is more important. I would contact the creditors you currently have high balances with and ask for a hardship payment plan. They may or may not suspend your charging privileges but that's what your new cards would serve purpose for until you can get disability payments to catch up. Also don't overlook your 401K if you have one. It can be a great source for a loan. Good luck and get better.

Re: I have become very ill and need advice!

ddemari — Thu, 13 Aug 2015 21:56:42 GMT

Here's the problem with the Prosper loan or any similiar type of online loan; they interest is sky high unless you have like a 780+ FICO. Also, if you take out a loan for $35,000.00 for medical and living expenses, what do you plan on using to make the monthly loan payments?

I guess if I were you and I am sorry for your situation. Medical situations create such an emotional, physical and financial toal on a person.

Here are somethings to think about;

1. Do you have any type of emergency savings? if so, how much?

2. Do you have a 401k? If so, how much is in there? If you made over $100,000.00 last year, could I assume you are involved with some type of financial planning company?

3. It looks like you have roughly $45,000.00 in CC debt. Can you sustain the minimum payments on them on top of a loan?

Loans from places like Proser, Avant, LendingTree, etc. are so layered. They tout maybe an interest rate of 1-36% percent. I know from checking my offers on those sites, they were using a TU fico score that was way outdated and wanted to give me $4,000.00 at 34.9% interest with their FICO score of mine at 715.

If I took that offer, I would end up paying roughly $8,000.00 in interest over the course of that loan and have to make payments of at least $250.00 a month for 30 months.

This is something very hard to deal with. If you have a 401k, go that route.

Re: I have become very ill and need advice!

ddemari — Thu, 13 Aug 2015 22:11:09 GMT

Also, not to be a downer on the situation but loans like prosper rely on credit score but a larger larger impact is placed on income. They will want pay stubs, bank account records etc.

In your situation, honestly and not to be rude. Unless u have some magor money saved. A chapter 13 bk is probably where u will find yourself down the road. Im sorry.

Re: I have become very ill and need advice!

Callandra — Fri, 14 Aug 2015 00:00:34 GMT

I'm very sorry to hear about your illness.

As others have asked, do you have a 401(k) or any savings? If so, now would be the rainy day to use it.

Will you be able to work again (at some point, probably not right away)?

Do you have any family or spouse or anyone who can help you out financially?

If you have any more medical expenses, I suggest not paying them with your CCs and work on payment plans with the hospital. Some hospitals will be willing to work with you and see if they have any charity programs for you since you are out of work. Is there anything you can sell?

Re: I have become very ill and need advice!

NRB525 — Fri, 14 Aug 2015 00:13:55 GMT

OP, why do you need the additional credit? Is it to pay for more medical treatments? If so, the better option may be to arrange with those medical providers some sort of lower cost services, or find a way to get in-network.

What are your daily living expenses? Do you have savings to pay for that? If your cash flow situation is really dire, you need to hunker down to be able to just get by, and the credit card payments, if you do not have resources to pay them, need to be minimum payments or defaulted on.

The only time you should consider taking on more debt to pay current debts is if you have a realistic plan for getting back to an income earning situation.

If there is not a near term plan for that, if this is going to drag on, then you need to consider not Chapter 13 BK, but Chapter 7, and the way you get to Chapter 7 is making your income be lower than the threshhold for Chapter 13. If you intend to pay off the debts eventually, then Ch 13 can be considered. If that is in doubt, then the debts as they currently exist should not be your highest priority; getting through this and trying to get back to a basic living standard should be your highest priority. Does this mean you may burn some creditors? Yes, it is possible. But guess what? Over time, there will be other creditors later who will want your business. Capital One, for one, will be right there ready for you when you start to get back on your feet.

Good luck!

Re: I have become very ill and need advice!

taxi818 — Fri, 14 Aug 2015 00:17:09 GMT

@Callandra wrote:
I'm very sorry to hear about your illness.

As others have asked, do you have a 401(k) or any savings? If so, now would be the rainy day to use it.

Will you be able to work again (at some point, probably not right away)?

Do you have any family or spouse or anyone who can help you out financially?

If you have any more medical expenses, I suggest not paying them with your CCs and work on payment plans with the hospital. Some hospitals will be willing to work with you and see if they have any charity programs for you since you are out of work. Is there anything you can sell?

The problem with working out programs with hospitals they will still report you. probably as a collection and scores will be worst. At this point. i would not worry about my credit score. Your well being is always much more important than credit. Of course you need to live. especially being bed ridden. Applying for disability is also horrible. But better than doing nothing. i would just do what you are doing. honestly and try and turn some of that current credit card available limit to cash for a rainy day. Im not saying blow them off. But if it comes down to your life and you living. Bk is not a bad options. of course after you take care of your physical needs. im just saying. Life is more important than credit and what debt you have

Re: I have become very ill and need advice!

icyhot — Fri, 14 Aug 2015 00:43:57 GMT

OMG, this thread is making me so sad. OP I'm so sorry this is happening to you. Please try to work out some kind of plan with the provider. I've done it several times and had my liability completely wiped out. Of course, your income will look like you don't need it but given your current situation and the amount of your medical bills your hardship can be considered, and most health systems shouldn't report you if they absolved you of the liability. After you do that, call your creditors and work out a plan with them. Don't take out the Prosper loan, consider a PLOC instead if the purpose is for living expenses

Re: I have become very ill and need advice!

thirst305 — Fri, 14 Aug 2015 06:26:10 GMT

I'm so sorry to hear the predicament you are in.

That said, I think securing your medical treatment is more important than your score and perhaps your credit. You need to have spending money, for living expenses and/or medical treatment.

If it were me, I would max out every card and have cash on hand to pay for bills. Try to make minimum payments, but ultimately, probably consider chap 13/7/defaulting - and to worry about my health first. Credit can be repaired, but you only have one health.

Good luck.

Re: I have become very ill and need advice!

Imperfectfuture — Fri, 14 Aug 2015 12:28:28 GMT

@Anonymous wrote:
@egzen75 wrote:
I have become bedridden with a serious illness. I am unable to work and must apply for dissability. My last tax return showed income over $100,000. I have put myself in serious credit card debt paying for medical treatments that were out of network. I have the following cards and balances:

AMEX Cash $15,000 of $22,000
Chase Sapphire $14,000 of $24,000
B of A $15,000 of $20,000
Best Buy Store Card $0 of $10,000
Best Buy Visa $0 of $20,000
Capital One $1500 of $5000ided

Because I realized that I might not recieve any disability for as long as 18 months, I decided to open some new credit card accts.

Discover $3400
Chase Freedom $5500
Barclaycard $10,000
Citi Double Cash $4300

Ok so I'm thinking abuot trying to take a Prosper loan of $35,000 for medical and living expenses. Please understand that I am in a major crisis and unabl to get out of bed. I am thnking about transfering balances to max out these new cards and their 0% APR to save money. Will this hurt my score? Should I let all these new cards report with 0 balances or go ahead and do balance transfers? Will the Prosper loan be easier to get (will my score be higher) if I leave these new cards with 0 balances or does it not matter? This is very complicated and scary, I'm hoping for some good advice. I've also heard of Upstart for personal loans. Anyone have a better company for the personal loan?

Thanks in advance!
Your scores are probably already hurting from the utilization you are at already. Also, If you start transfering balances I would not be surprised if AmEx, Chase, and BoA started balance chasing you immediately. You need to decide wether your score is more important, or paying less interest is more important. I would contact the creditors you currently have high balances with and ask for a hardship payment plan. They may or may not suspend your charging privileges but that's what your new cards would serve purpose for until you can get disability payments to catch up. Also don't overlook your 401K if you have one. It can be a great source for a loan. Good luck and get better.

It's a long time until disability (if it's the social security type, no disability insurance?). And the amount of disability will in no way help that amount of credit. You MIGHT get 2k per month. If disability insurance, more, but less on social security. Applying for more credit without actual income, will be a problem if you need to go BK.

And if you get better, can not get social security. (Hence the long time to get). Good luck.

Re: I have become very ill and need advice!

Imperfectfuture — Fri, 14 Aug 2015 12:32:33 GMT

@ddemari wrote:
Also, not to be a downer on the situation but loans like prosper rely on credit score but a larger larger impact is placed on income. They will want pay stubs, bank account records etc.

In your situation, honestly and not to be rude. Unless u have some magor money saved. A chapter 13 bk is probably where u will find yourself down the road. Im sorry.

Actually, disability payments are judgement proof, they will not allow a chapter thirteen, only 7. If OP gets better, and gets job back or new job, then can either pay off or or consolidate. What are the ramifications of cashing out the 401k, provided they do not allow loan based on non work status?

Re: I have become very ill and need advice!

Imperfectfuture — Fri, 14 Aug 2015 12:36:09 GMT

@taxi818 wrote:
@Callandra wrote:
I'm very sorry to hear about your illness.

As others have asked, do you have a 401(k) or any savings? If so, now would be the rainy day to use it.

Will you be able to work again (at some point, probably not right away)?

Do you have any family or spouse or anyone who can help you out financially?

If you have any more medical expenses, I suggest not paying them with your CCs and work on payment plans with the hospital. Some hospitals will be willing to work with you and see if they have any charity programs for you since you are out of work. Is there anything you can sell?
The problem with working out programs with hospitals they will still report you. probably as a collection and scores will be worst. At this point. i would not worry about my credit score. Your well being is always much more important than credit. Of course you need to live. especially being bed ridden. Applying for disability is also horrible. But better than doing nothing. i would just do what you are doing. honestly and try and turn some of that current credit card available limit to cash for a rainy day. Im not saying blow them off. But if it comes down to your life and you living. Bk is not a bad options. of course after you take care of your physical needs. im just saying. Life is more important than credit and what debt you have

This is incorrect, having lost job, payment plans with some medical providers, and charity care with hospital. Get the charity care ASAP. Fax in proof of not working. Do not charge any more debt. And be prepared to seriously lower your standard of living.

Re: I have become very ill and need advice!

CreditCuriosity — Fri, 14 Aug 2015 12:50:39 GMT

@Imperfectfuture wrote:
@taxi818 wrote:
@Callandra wrote:
I'm very sorry to hear about your illness.

As others have asked, do you have a 401(k) or any savings? If so, now would be the rainy day to use it.

Will you be able to work again (at some point, probably not right away)?

Do you have any family or spouse or anyone who can help you out financially?

If you have any more medical expenses, I suggest not paying them with your CCs and work on payment plans with the hospital. Some hospitals will be willing to work with you and see if they have any charity programs for you since you are out of work. Is there anything you can sell?
The problem with working out programs with hospitals they will still report you. probably as a collection and scores will be worst. At this point. i would not worry about my credit score. Your well being is always much more important than credit. Of course you need to live. especially being bed ridden. Applying for disability is also horrible. But better than doing nothing. i would just do what you are doing. honestly and try and turn some of that current credit card available limit to cash for a rainy day. Im not saying blow them off. But if it comes down to your life and you living. Bk is not a bad options. of course after you take care of your physical needs. im just saying. Life is more important than credit and what debt you have
This is incorrect, having lost job, payment plans with some medical providers, and charity care with hospital. Get the charity care ASAP. Fax in proof of not working. Do not charge any more debt. And be prepared to seriously lower your standard of living.

This is true statement. I work for a MAJOR hospital/university and we did 260 million in charity care this last fiscal year, just part of our losses that we ate. I wrote the revenue cycle dashboard and all the metrics.. There are programs, how you qualify for them I am not sure on that aspect, just see the numbers.

Best of luck on your recovery OP!

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 13:05:36 GMT

Regardless I would still be calling the creditors with highest balances and ask for hardship payment plans.

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 13:23:47 GMT

So sorry to hear this OP. Is this condition temporary or permanent? My cousin just received disability. She was making 100,000 a year, so her disability checks are 3,000 a month.

I agree with the others. Work out a payment plans, and borrow against your 401k if you have one.

Hope everything works out.

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 18:37:15 GMT

@taxi818 wrote:
@Callandra wrote:
I'm very sorry to hear about your illness.

As others have asked, do you have a 401(k) or any savings? If so, now would be the rainy day to use it.

Will you be able to work again (at some point, probably not right away)?

Do you have any family or spouse or anyone who can help you out financially?

If you have any more medical expenses, I suggest not paying them with your CCs and work on payment plans with the hospital. Some hospitals will be willing to work with you and see if they have any charity programs for you since you are out of work. Is there anything you can sell?
The problem with working out programs with hospitals they will still report you. probably as a collection and scores will be worst. At this point. i would not worry about my credit score. Your well being is always much more important than credit. Of course you need to live. especially being bed ridden. Applying for disability is also horrible. But better than doing nothing. i would just do what you are doing. honestly and try and turn some of that current credit card available limit to cash for a rainy day. Im not saying blow them off. But if it comes down to your life and you living. Bk is not a bad options. of course after you take care of your physical needs. im just saying. Life is more important than credit and what debt you have

nope, not true. Hospitals got financial dept and they are willing to let you pay them back with low monthly fee interest free. When I had a surgery last year, I still had to pay 4500 out of pocket but with missing one month of work and wasn't eligible for the temp. disability insurance, I had no way to pay them back in lump sum in cash, so I called the financial dept to split the pay in two 0% apr credit cards, anyway before I even say anything, the lady on the phone asked me if i was interested in interest free payment plan of 2 years, and told me if monthly payment is too much then there's longer plan available. I asked about how much it'll cost me monthly if i pay within a year (because i didn't wanna have to pay for 2 years), and it was manageable, so i took the 1 year plan. anyway, it hasn't yet to show up on my credit report as a loan nor collection, but i'm guessing if I miss any payment, it'll definitely show up as late payment or go over to collection agency.

Even my mom who battled with cancer this year, had to pay 4500 out of pocket for in-network, and 8500 for out-of-network, she didn't have any problem paying them off, but they still offered interest free payment option to her.

I think hospitals give these options to people, because a lot of people have to file bankruptcy due to high bills, and they rather get paid even in small amount for long time than not getting paid at all.

so OP, call the hopsital and tell them your situation, and have them work with you on how you can pay them back without incurring more debt. And I hope you get well a.s.a.p!

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 17:14:14 GMT

OP, I don't have any good advice that the others haven't stated, but you're in my thoughts. Here's hoping to a quick, least-painful recovery, or if it's permanent, then a least-painful adaptation.

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 17:26:34 GMT

Very sorry you are ill. If you are able to get a secured loan, it will have lower interest rates than credit cards.

Re: I have become very ill and need advice!

Anonymous — Fri, 14 Aug 2015 17:28:34 GMT

Huge tax ramifications to cashing out a large amount of money on 401k, but may be only option.

Alos, I agree with the posters who are saying to work out a payment plan with the medical provdiers and hospital and not to put medical bills on credit cards.