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I have two old medical bills that won't go off my credit report for about 3 years, and in the meantime they are still being reported as current and derogatory. They total about $5000. One is about $500 and the other about $4500.

I'm paying off my large credit card balance which later became an installment plan for $220 minimum in October. So once that is paid, my next plan is to do a settlement for these medical bills and repair my credit. I am not sure if the best route would be to go through a debt consolidation program or not. I'm able to handle all my regular bills on my own, except for my internet pdls (I have 5 still left)that I've defaulted on and can make payment arrangements on my own. I've tried to see what settlement companies on the internet can do for me, but so far nothing encouraging because they claim they don't do business in Wisconsin. The medical bills are being handled through the State Collection Services agency, and I've paid 2 smaller accounts to them previously. I'm not sure if I offer $1000, if that is going to be a high enough figure for them to accept my terms. I've read some samples of debt settlement letters, so I know how to state my offer and such.

Posted: Thu Oct 04, 2007 11:15 am Subject:

A debt consolidation program will be able to negotiate an affordable monthly payment for the medical bills, but your account will continue to be reported as current. If 3 years have gone by since a payment was made and they are still showing as current and derogatory, have you tried disputing both accounts with the credit bureaus?

Doing this will force the collection agency to validate them, and if they don't, the bureaus should remove them.

I would offer a settlement of the amounts you owe. If it has been about 3 years, they will want to get some money, which is better than nothing. If you go this route, just make sure that you get something in writing that states the account has been settled and nothing is owing.