topic Re: Paying off medical collections in Rebuilding Your Credit

Paying off medical collections

Anonymous — Fri, 13 Dec 2019 21:36:22 GMT

Ok so there is many parts to this, so bear with me.
I have about 16-17 medical debts in collections, yikes I know.

Most of it occurred in 2014-2015, There is only 2 collection accounts that are on all three reports, one of which I paid for deletion yesterday ($1,426) and the other is $137 due to fall off 4/20. Then a good chunk of the rest are on both transunion and Experian (11 accounts- 6 of which are from ONE original creditor). Then 2 only being on experian. Most of the debts are scheduled to fall off (according to this app) in the next following years 20/21/22. I took out a $5,000 loan (minus that 1,426 payment yesterday) with my hubby (so I got a nice low interest rate) and in hindsight I should’ve gone for 6k or 7k But this is a good start.

Now that I have painted a somewhat full picture, which collections should I focus on next? I have a big collection (on both trans&exp) in the amount of $1,445 that won’t fall off until 7/22. Then the cluster of 6 collections from one creditor totaling $1,249 and 5 of those are scheduled to fall off in nov/dec of next year. The rest of the transunion/experian collection amounts are $199 (fall off 8/22), $328 (fall off 1/21), $146 (fall off 1/22), $99 (one of the 6 from one oc, falls off 3/21), $260 (falls off 11/20). Two big ones of $616 & $816 (only on expreían and are scheduled to fall off in 22/21 respectively). One final collection is only on transunion for $375 and I’m not sure when it will fall off. Should I focus on the debts that aren’t supposed to fall off until later, like the ones with 21/22 year fall offs? Do I focus on quantity and take care of those 6 collections? Do I knock out the other big one of $1445 then go on to the other bigger ones? Leaving the piddly ones for later?

Also I have a few credit cards that I am above my 30% usage, my payments have always been on time and they have been helping raise my credit but I’m at a standstill because of the collections, it would take $1,000 to bring those balances down to back under my 30%. Should I also do this?

I’m just trying to find the most beneficial way to clear up some of those collections so my scores can finally start going up because we will be house hunting soon and my hubby’s credit is great but mine isn’t and also in the state of Michigan medical debt isn’t supposed to count against me in that process but I guess above $2,000 it does?

What would your payoff list look like? What would you pay off next and what’s more important? Quantity of accounts paid off for deletion or getting the big balances out of the way? Pay down my current credit cards?

Re: Paying off medical collections

FireMedic1 — Sat, 14 Dec 2019 00:22:26 GMT

Welcome @Anonymous

First. Who is the original creditor/MD/Hospital. Especially this one: 6 of which are from ONE original creditor. Please list the collection agency names and what is owed. There are some that will pay for delete if PIF or settled. If they are from one of them. Then hit them up first. But lets see who they are on both sides.

Re: Paying off medical collections

Anonymous — Sat, 14 Dec 2019 03:20:33 GMT

Ok @FireMedic1 here’s the list:
The 6: CA: Accelerated Receivables, OC: Michigan Pain Institute; There are two account numbers, for the first one the amounts are $520, $350, & $99. The second is $350, $79, & $150.
-CA: Accelerated Receivables, OC: St. Joseph Mercy health system - amount:$146
-CA: first federal credit control (the $1426 that I already used was for a therapist and the CA was first federal as well and they did a pay for delete) OC: is a dentist -Amount is $137
—CA: Merchants & Medical, OC: IHA health services - amount: $1445
-CA:Radius Global Solutions, OC: another dentist - $199
-CA:Enhanced Recovery, OC: TMobile (not medical don’t know why I included this one) amount:$328
-CA: Arbor professional solutions, OC: rehabilitation health center (physical therapy) amount: $260
-CA: American Profit Recovery, OC: Michigan Pain Specialists - amount:$616
-CA: American Profit Recovery, OC: Neurology Associates - amount:$816
-CA: I C System, OC: associates in physical med rehab - amount:$375

Whew that was a lot, yet again and thanks for commenting!

Re: Paying off medical collections

FireMedic1 — Sat, 14 Dec 2019 13:42:46 GMT

I was hoping it was like 1 hospital or MD office. These look to be spread out to all kinds of MD groups for services rendured. These 2 CA's I dont know much about. Or really never of them. I'm not on my desktop, just laptop today. Moderator @gdale6 has a method to help rid yourself of these med collections. He'll see my ping and lend a helping hand. Sorry it wasnt one of the known PFD agencies. Good Luck andHappy Holidays!

Re: Paying off medical collections

gdale6 — Sun, 15 Dec 2019 12:38:44 GMT

Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.