Will it affect my credit?

by Anna
(Orange County US)


Early April 2011 I was hospitalized for liver problems. I have insurance and they covered most of the expenses. At that time I didn't have a good paying job so I couldn't afford to pay $1003. On december 2011, I was contacted by collections to pay up the debt. They said I could pay up within 90 days before they report it to my credit. I have no problem paying. But my concern is, if it is in fact the truth? Because I am trying to buy a house and I'm afraid this will affect me.

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Feb 17, 2012
Will it affect my credit?
by: Debtcollectionanswers

Unfortunately, when a debt is past due, the creditor is legally entitled to report that fact to the credit reporting agencies. However, you may be able to avoid having that happen by working out a payment plan with the collection agency. In other words, you would agree to pay off the $1003 over time by making a fixed amount of payments of a certain amount and the agency would agree that as long as you keep up with the payments, it will not report your debt to the credit bureaus. If you work out such an arrangement with the collection agency, get all of the terms of the agreement in writing before you make any payments on it.

Another possible option is to settle the debt in exchange for not having it reported. Settlement involves negotiating a deal by which the agency agrees to accept something less than what you owe as payment in full. You will probably have to pay that amount in a lump sum. Again, if you and the collection agency are able to work out a settlement arrangement, do not pay any money until all of the terms of the agreement are in writing.

Go here is you would like to read more about the effect of past duemedical bills on credit.

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