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Kumikochan

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Pay off active debts or ones that haven't been reported?
I would like to begin paying off the outstanding debts I currently have but I do not know where to start. I currently have open debts that are in collection status as well as a couple that have not been appeared on my credit report yet as an adverse claim. So I would like to know:

1. Should I begin to pay off the debts that are active collection status first or should I begin with those that are still being taken care of in-house and that do not appear on my credit report?

2. Of those outstanding debts that are in active collection, some are medical bills. I recently heard that a new law makes it illegal for medical bills to adversely effect a person's credit. Is this true? If so, how should I go about having this removed from my credit report if it should not be there by law? (I'm in Florida if that helps).

Any feedback on these issues would be very much appreciated, thank you!

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First of all, your negative/collection medical bills will not be removed from your credit reports because of the the new law. The law affects how the medical bills affect your credit score. Medical debt will not drag the credit score down as much as in the past but they will still remain on your report for up to 7 years.

As far as paying off your debt, here is what I would do. Attack the debt that is outstanding/in collections that have not been reported to any credit beaurus yet. You do not want any new negative accounts added to your reports or that will just drag your credit score down even farther and will stay there for up to 7 years. Once those debts are paid off, then you can concentrate on the debts that are already on your credit reports. They are already on the report so doing nothing on them until the current debt is paid is not going to hurt your credit any more than it is being hurt right now.

Reply by
Kumikochan

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Thank you so much, I will definitely take your advice!

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