Hello all. I'm going to post some financial advice. You should always keep the first one in mind. I pray that none of you ever need the second. It presents a bit of an ethical problem. Please take it with a grain of salt. I've only been a credit counselor since October. Please just think of this as "what's been on my mind."
1) Make sure you know the explanation for every item on a medical bill before you pay it. Hospitals are notorious for overbilling (ever paid $5 for an aspirin pill? Sure?) Having been stuck with an unanticipated $1600 hospital bill last year, this advice is dear to our hearts; I wish we'd known it then. The same goes for phone bills or any other complicated bill.
2) *Warning. Research this yourself before doing it.* If you're negotiating with a creditor or collector about a bill on which you can't reasonably make the full monthly payment, tell the collector that you're considering a bankruptcy. They may automatically change their tune when they face the prospect of being stiffed; a settlement or payment reduction may seem much more reasonable to them. Here's the ethical problem: it's an especially good idea if it's a lie. If you really are considering a bankruptcy, mentioning the fact to a creditor will make it difficult to discharge any debts incurred between the mention of bankruptcy and the filing date. At the hearing, the creditor will tell the judge about the conversation, and the judge will accuse you of wanting a free lunch , which you will not get. If you're not considering bankruptcy, then mention it freely, if your conscience can take it.
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