mandabee

I had a $25 charge on a medical service a year ago that went into collections. Shortly before it went to the collections agency, I was credited $40 to the same medical account, resulting in a net credit of $15. I had the original medical billing office contact the collections agency and let them know that my account was now current. Can this person do the same thing?

You can get a list of all your debts and collection accounts by accessing your credit score at annualcreditreport.com. There should be a listing of each account and the payment address and telephone number. From that point you can contact each agency personally and confirm total payoff balances and make arrangements for payment.

Don't declare bankruptcy for a $5500 debt obligation. You are already looking for a second job to help increase your available income. With a little creativity in your spending (buying generic food products, cutting out unnecessary expenses like cable tv, and dining out (and home phone if you have a cell), living with family members or getting a roommate, etc.), you could wipe out your debt pretty quickly.

Use the debt snowball method to pay off your lowest balance or highest interest rate debt first, then go to the next lowest balance or next highest interest rate debt, and so on. Even if you can only funnel $100 or $150 a month to paying off your debt, that's $150 a month you no longer owe to your creditors. As soon as you get another job, you should immediately adjust your debt repayments appropriately--if you're making $500 extra a month, pay $500 extra toward your debt. You can do this!!

You can contact the hospital billing offices and try to negotiate a repayment plan.Hospitals want to et paid, so they are usually willing to work with you to get their money. Explain your circumstances and willingness to pay, as well as how much you can realistically spare each month. Be courteous and sincere.