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kikinbnfl

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Help, please - Our 19 yr old child lives with us & his 3000 hospital bill went to collection agency.
He just graduated high school last spring and is not working as he's full-time in college. We agreed to pay the collection agency $75.00 per month but that will take more than 3 years to pay. What happens to his credit now? Will this hold him back from eventually getting his own apartment, car, etc? Will this stay on his credit report for more than 10 years (3 to pay off then the additional 7 before it falls off)? This is all new to us. Need advice, please. Seems like his credit is ruined before it even begins.

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As it went to collections and the payment arrangement was not made with the hospital, I am afraid it will remain on his credit for 7 years.   The time for arrangements should have been made while it was still a hospital bill and not after they gave up trying to collect and sent it to their outside agency.   The only hope is if it never made it to the credit report itself.  Not all collection agencies report the debts and it also depends on how long they had tried to collect before the agreement was made.  If he was a dependent of yours and was your responsibility and/or you signed as guarantor of the debt for the hospital, it should be on your report and not on his.  While it will remain on the report for up to 7 years, you proof of payments will help to shorten the impact.   The debt time table should be from the date it was reported as to the bureau, not from the payments.  Although, the payments work against the statute of limitations which is not a concern as you are paying it.

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