Medical Bill/Collection

Happy Veteran’s Day!

I have a hospital bill from where my daughter was in there last year for almost 2 weeks that is about $1,500 now left to pay. At first, the company handling their accounts said I could pay $25 a month minimum, so I did (that was before I got the phone tape recording device). Then I got a letter saying it is their policy for me to have it paid off in 12 months and I told them I couldn’t pay that much right now since I have so many other medical bills I am paying on. They wanted something like $120 a month! That is a big jump from what I was previously told! They also told me they couldn’t take smaller payments, so now they turned me in to the collection company and I have 2 weeks before it goes on my credit report. The credit agency told me that I would have to pay $140 a month and they don’t even accept less, even though it would still be on my credit report!

I talked to my husband about just getting a bad credit installment loan from MtpLoans or PersonalMoneyService for the amount to avoid it going on the report, but he doesn’t want to take out another loan. He says just pay them what you can and forget it, but I’m concerned they’ll not cash my checks if I send less and they might take me to court or something. Also, I’ve cleaned up my credit report (it’s not perfect…but much better) and now I feel this will be a blemish for the next 7 years. My husband says creditors won’t look much at a hospital bill.

Can they actually refuse payments of less than what they are requiring? Also, do creditors actually overlook hospital bills to an extent? If we did get a loan for it, the interest would probably be really high.