What if I cannot pay credit card debt because I have medical expenses?

The debt is not huge but the monthly payments are more than I can afford. If I pay less, I might as well throw my money away as it does not reduce the debt but just keeps down a small amount of interest (not much). I still get fees, etc. I might as well pay nothing and use the money for necessary expenses. I am thinking to let them sue me as I feel I have a better chance in court than the company given my unavoidable medical expenses.

What if I cannot pay credit card debt because I have medical expenses?
Relax. Meet your Bank Manager and explain the situation to him. If he doesnt co-operate then just ignore the reminders you receive, i.e. if your medical expanses are really unavoidable and you have no way out. The Bank cannot sue you for a credit card transaction as there is no legal documentation at the time of the exchange, no stamp paper etc. just deny you had done the transaction, act innocent as though someone else has hacked your account. The bank will try to intimidate you, you've got to stand your ground. Credit Card transaction is a private transaction and not really legalised.





On the other hand you could avail a bank loan if you are in a good occupation which would take care of your medical expenses and also clear your credit card dues. This would give you peace of mind and besides in this fast world its all about taking from Peter to pay Paul. Yes you must know how to rotate your funds. But when you are in a better position make sure to pay up and live low until you can wriggle out of the present situation.
Reply:Have you applied for financial assistance at the hopital social services office? They helped my brother one time but you really need to have your story together when you get there.





Level with the credit card company's but expect them to reduce your credit limit etc...they may even close it so have a cash budget ready.
Reply:I do not think it is a good idea to let a creditor sue you for unpaid debt because you may loose the case even though you have unavoidable medical bills.





If you borrowed the money you are and had the debt before the medical bills than you are "legally" obligated and responsible for paying your payments on a monthly basis.





You will also have to pay court and attorney fees and these can be quite pricey.





Also in the long run your credit score will be directly affected if you do not pay your debt as well.





If I were you contact the creditors and explain your situation and ask if you can develop a payment plan to pay your debt back.





Also contact the company that you owe the medical bills and do the same.





You never know they might be able to assist you and you can keep your accounts current and in good standing.





Hope this info has helped you.





God Bless.....
Reply:Take a step back and re-read what you are saying!





You are willing to risk a "court judgment" which can lead up to potential garnishments on your wages because you have "unavoidable medical expenses"





Are you sure you are ready for how long this judgment can sit on your credit history ruining your financial stability for years to come?





Let me say this when dealing with creditors. Waiting to be sued is like waiting to be hit by a train . . . .never a good idea.





Call your creditors and GET REAL with them just like you have to GET REAL with crazy family members who won't do right.





First of all, your medical bills are SUBORDINATE to your credit card bills. You can make payment plans over 24-36 months with hospital bills, but you need to write the company VIA CERTIFIED LETTER AND LET THEM KNOW WHAT PAYMENT PLAN WILL WORK FOR YOU.





You act as if you have NO CONTROL over the situation.





Hell, if you know your financial state, just be firm and professional with each creditor and let them know what you can handle.





They will usually work with you. Please bear in mind, however, that the credit card company may not allow you to make additional charges on your credit card while you are under a payment plan or what they may also call "loss mitigation".
Reply:As sad as it is.....you had (have) a legal obligation to pay the debt back. Medical expenses, while understandable, do not absolve you from paying back the debt legally.





While most creditors will understand and work with you, it is not because they have to.....it's because they'd rather get at least something toward the debt as opposed to getting nothing.





If it is not a lot of money, you should call them and ask to restructure the payments....maybe they'll allow you to balloon it, meaning low payments for 2-3 years with a large payment due at the end when you've had time to get back on your feet financially. You can either pay the balloon or refinance it at better terms potentially.





But if they allow it....it is NOT an opportunity to go out and rack up more debt for other things.....always work on paying down the bills first...this will help your credit score.





If you are not a lawyer, then don't make your own legal decisions based on what you think. If you let the case go to court...the court will only look at one item.....do you owe the money or not? In court, there is no such thing as extenuating circumstances like medical expenses. You either owe the money or you don't. If the debt is good and you do owe the money, then you will certainly lose in court and then not only will you still owe the money but now a court has ordered you to repay it and if you don't, it will get that much worse for you.
Reply:My husband and I had a lot of credit card debt. We had 6 joint cards and I had 8 other cards in my name, alone. All were


close to the limits. We'd been making the minimum payments, on each. Then we had a car accident. The guy that hit us, had no insurance. We didn't have any uninsured motorist coverage


on our liability only policy. We had no medical insurance through work. The medical bills were huge. Then, I got pregnant and had some complications. More medical bills, etc. etc.


We wrote letters to all our creditors, with detailed information


on our financial situation, informing them that we simply could no longer afford to pay their bills and pay our necessary living expenses. Then, we stopped paying them.


We got a lot of letters and phone calls demanding payment.


The letters ended up in the trash can. The phone calls, we


either hung up on the collection agency or just didn't answer them.


The credit card companies may try to sue you, but the only thing they can collect from you is at worse a garnishment of your wages. The most they can garnish by law from your paycheck is a total of 20 percent (for more than one judgement) or 15 percent for 1 judgement. If you can show the court that you can't afford necessary living expenses if they garnish your paycheck, they


won't garnish it , in most cases.


All of the debts you don't pay will show up on your credit report,


but they will all fall off 7 - 10 years after they go on.


Bad credit isn't the end of the world, like some people like to claim it is.


My husband and I have bankruptcy, repos, and judgements on our reports with a lot of unpaid bills, but we were still able to get


financed on a car, house, cell phone etc. after we recovered and were able to return to work.
Reply:Call the credit card company and ask if they offer a "hardship" status program in which they reduce your monthly payments, stop fees and no APR for several months. Explain your medical situation. Most credit card companies have this or a similar plan to help you in paying off your debt without incurring additional fees up to a certain specified period of time.