I’m wondering if this is correct. I am not looking to do anything wrong, illegal or immoral. I am looking for a way to get my credit back and pay all my bills.
I had pretty good credit all my life, I was 780 until after I was injured and couldn’t pay about $5,000 in medical bills. I’m trying to get that under control, but it has gone to collection. I spoke with them, they are actually decent and I will pay it off. I was out of work for a long time and decimated my savings and ran up my credit cards, just to live.
I have an option to consolidate my debt and pay everyone off and get a decent rate too. The savings in interest alone will help me pay off everything 1 year faster. Here’s the rub. The $5,000 medical debt will kill my chance of getting the consolidation loan. A friend advised that I could challenge the debt and it would be temporarily off my credit for a short time. I was hoping to use that window of time to apply for the loan and then pay everything I owe off, owing just the consolidation loan.
I don’t know if this is true, he didn’t have any more details. Do any of you have good information on this?
Any help you can give me is greatly appreciated.
Summary:
I’m trying to get a consolidation loan to pay off the loan that will prevent me from getting the consolidation loan in the first place!
I was told that the item you’re challenging will remain on the report during the challenge process. I was also told that I could add an explanation that would print on the report with it, but (get this) I couldn’t do both. I could either challenge it or explain it.
I would advise you to arrange a short consultation with an attorney who knows that field. You would get much more trustworthy advice than you’ll get here, and an initial consultation is usually pretty reasonably priced.
What you’re considering is certainly immoral, and potentially illegal. If you can’t get the consolidation loan in your current financial situation, lying and hiding your debts to scam your way into one is not advisable.
I’m only pointing this out because you stated you have no plans to do anything immoral or illegal.
I know firsthand from my own bankruptcy filing that medical debts won’t be sent to collections as long as you make a good-faith effort to pay them back (even if all you can afford is $5 a month). That you were sent to collections implies that you haven’t dealt with your medical debt in a good-faith manner. Adding this to the immoral request you’re currently considering, and I strongly advise against anyone providing said advice.
I had several medical debts sent to collections even though they were paid, by my insurance company. I provided the hospital with paperwork proving that the insurance company paid the bill, and was met with nothing but rudeness and hostility from them. :mad: Is there any legal reason they can’t send you to collections if you pay even a minimal amount, or is it pretty much just a “gentleman’s agreement”? If it is the latter, I wouldn’t expect it to always be honored.
Nothing legal as far as I’m aware (ianal). However, my unpaid medical bills took the longest to be reported to the Big 3, as opposed to student loans and credit card bills. Medical providers are generally more willing than other creditors to work out a long term payment plan, as well.
Regardless, this is tangential. OP is asking for advice to engage in loan fraud and I don’t think providing any would be wise or ethical.