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Medicredit Debt and how to handle this or not at all (Advice Please)

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Anonymous
Not applicable

Medicredit Debt and how to handle this or not at all (Advice Please)

So i was in a car accident at my job (I drive and deliver) 

The accident was deemed i was the wrong for running a yellow light that turned red right as i passed it (I know save me the speeches) 

I was banged up and other people were just fine no injuires reported but my concussion, i was taken to a hospital and given treatment for a severe concussion and all types of scans etc were done which isnt the issue here. The bill came out to 53,000 and after my insurance kicked int etc the total was 2850, i wasnt given notice of the remaining balance until it was sent to the infamous medicredit and they have been calling me about every other day asking for payment etc. I do not have the funds to pay this as this accident demoted me from my position and im going back to school at the moment. my income doesnt even make 50% of this debt owed. I called them and they said they could do 40% off for a total of 1700 which i still cant pay at all. ill be dead broke which i wont do as financailly speaking doesnt seem right to do.
The rep said they dont own the debt and can only discount what the hopsital can allow them to which doesnt seem right at all. 

What do i do? its already hit my credit report for huge ding so the damage is done.
Should I let this go and let time take care of it or is that all what they really can discount?

 

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Medicredit Debt and how to handle this or not at all (Advice Please)

You can try to call the original creditor and make a PIF arrangement for them in exchange for them to recall it. 

Sorry you went through all of this.  Hope it all works out!

Message 2 of 7
RobertEG
Legendary Contributor

Re: Medicredit Debt and how to handle this or not at all (Advice Please)

If the debt collector only has assigned collection authority (as opposed to having purchased the debt), then yes, the creditor can impose restrictions upon how much their agent can agree to accept as discharge of the debt.

 

You can always make any offer to pay contingent upon agreement of the debt collector to delete their reported collections.

Pay for deletion offers are usually difficult to obtain due to CRA policies that instruct debt collectors not to delete based on payment of the debt, but they are possible.  

When you are ready to make a payment offer, then you can include a PFD clause in your offer.

Message 3 of 7
Remedios
Credit Mentor

Re: Medicredit Debt and how to handle this or not at all (Advice Please)

Hi and welcome to the forums 

 

 

Whether you chose to pay this debt or not is personal decision but here is what happens if you dont take care of it one way or another 

 

Collection agency keeps updating and entire time it keeps your scores suppressed. 

Eventually, debt will get sold to a different collection agency and the process restarts from the beginning. It will hurt your chances of getting credit extended to you in the future 

 

I'm going to copy and paste suggestion by gdale below on how to deal with medical debt 

 

 

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if insurance can be billed, 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

 

For you, 1,3 and 4 do not seem to be options, as insurance was already billed and you stated you cannot pay. So, that leaves you with 2 and 5. 

 

If neither one of those two work out, you can certainly leave it on your CR for full 7 years but that's not without a risk as some collection agencies will engage in legal action which can lead to wage garnishments and bank account levy if they get a judgement.  We already addressed how it can impact future applications for cars, homes, cards etc 

 

My suggestion would be to call back and start making some kind of payments to them. There are always ways to cut off a thing or two, even if it's just $50.00 per month. It might prevent debt being sold to a different CA. 

 

 

Good luck 

 

Message 4 of 7
Anonymous
Not applicable

Re: Medicredit Debt and how to handle this or not at all (Advice Please)

That’s what I’m thinking of doing but since I don’t make enough now and probably won’t since my work schedule is limited by my schooling it’ll have to wait for long time but by then I’ll probably wait till it drops off or the limitations is reached
Message 5 of 7
Anonymous
Not applicable

Re: Medicredit Debt and how to handle this or not at all (Advice Please)

Well if I were to agree to 50.00. A month that would be 3 years in payments which is doable but It’s still on my credit report and the damage is done, if they don’t agree to pay to delete what would have been the point if paying it off isn’t beneficial to me in the end.
Message 6 of 7
Remedios
Credit Mentor

Re: Medicredit Debt and how to handle this or not at all (Advice Please)


@Anonymous wrote:
Well if I were to agree to 50.00. A month that would be 3 years in payments which is doable but It’s still on my credit report and the damage is done, if they don’t agree to pay to delete what would have been the point if paying it off isn’t beneficial to me in the end.

 

There is damage and then there is damage 

While you may not need credit right now, there is a pretty good chance you will within next 7 years 

What happens if you need a car? With a score that's kept suppressed  you're looking at approvals that mimic payday loan rates. High APR on large purchase like that will easily exceed in interest what you owe for collections in just a few months. 

 

Paying off debt is always beneficial to you. Attempting to do it in smaller payments preserves your cash flow 

Message 7 of 7
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