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$10,000 in collections. I need help.

Date: Thu, 03/29/2007 - 12:17
Submitted by on Thu, 03/29/2007 - 12:17
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More than a year ago, I went to the ER without insurance. I filed out all the paperwork to try and get help paying for the visit, but I never got any help.

I ended up with 4 medical bill which total approximately $10,000.

I work full-time, and I'm a full-time college student. Most of the money I make goes towards rent, car payment, insurance... By the end of the month I don't have much to pay off collections. So I've been trying to ignore it until I'm finished with school and have a better paying job.

I called them and started a payment plan of $100 per month. They are charging 10% interest, so only about $20 of my payment was going towards principal. Also, it was never reported as a payment plan to my credit report.

Here's what my credit report says...
Account Name: PROGRESSIVE MGMT SYSTE
Account Number: *******
Acct Type: Collection Department / Agency / Attorney
Acct Status: Closed
Monthly Payment:
Date Open: 4/1/2006
Balance: $8,251.00
Terms: Unknown
High Balance:
Limit:
Past Due: $8,251.00
Payment Status: Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department

And another one from PMS for $691.00

And two from CMRE FINANCIAL SVCS IN totaling $230.

Plus interest for a year comes to about $10,000.

I have student loans and credit cards and a car loan which come to about $26,157 in total debt according to Experian.

I'm really lost and I don't know what to do. My credit score is 562, so I can't take out a loan to pay off the creditors. I don't have any missed payments on any of my other debt. And I know I can pay this off over time, but that means my credit will be bad for longer.

Thanks to anyone who can help.


You may consult a debt consultant and review your repayments. If the plan is tailored with lower repayments from what you are paying at present, you should consider enrolling into it. From where I see, your situation seems to be tough with all the high balances. Perhaps, you can consider settling your debts with the creditors. Settlement will be a negative remark in your credit but your debts will be paid off with a 50% reduction on the total balance.


Submitted by orake on Thu, 03/29/2007 - 12:52

orake

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