Hospital sending my account to collection

[SBYRD]

In March of 2004, my son was in an accident and had a substantial hospital bill as a result. Also, that year my husband and I both had hospital bills. After our insurance paid, we have Blue Cross Alliance, I asked the hospital to combine our bills so that I could make one monthly affordable payment. I have since been paying the hospital each month, increasing the payment as I could by getting other things paid. I did get behind once or twice, but would make two payments the next month to catch up. However, now the hospital wants paid in full for the remainder or they will send me to collections. They will not accept monthly payments any longer in the range I can afford, and they tell me because I have such excellent credit that I can get a loan or pay off the remainder with a credit card. However, both of those options will cost me extra in interest because I can't afford to pay in full at this time. How can I solve this problem?

 

[seniorjudge]

Q: How can I solve this problem?

A: "They will not accept monthly payments any longer in the range I can afford, and they tell me because I have such excellent credit that I can get a loan or pay off the remainder with a credit card. However, both of those options will cost me extra in interest because I can't afford to pay in full at this time."

 

[cbg]

I am by no means unsympathetic, because I just made my last payment on a hospital bill for a visit in February of 2005. However, there is no law I am aware of that prohibits them from calling for payment in full, no matter how faithfully you have paid in the past.

SJ, do you concur?

 

[SBYRD]

If they send me to a collection agency, will it affect my credit rating if I make payments instead of taking a loan to pay in full?

 

[mafioso]

It would affect your credit rating…………collections usually result in a negative on your credit report (delinquent payments). You would take a small hit depending on the length of your credit history. You don't want it to last too long on your report.

 

[seniorjudge]

...
However, there is no law I am aware of that prohibits them from calling for payment in full, no matter how faithfully you have paid in the past.

SJ, do you concur?

You are correct, eh!

 

[seniorjudge]

If they send me to a collection agency, will it affect my credit rating if I make payments instead of taking a loan to pay in full?

Every loan you make affects your credit rating.