Pay doctor bill off or put in savings

**missmanny** · 02-15-2010, 12:37 AM

For me it is a bit of a false economy to have money in savings and have outstanding bills.

I do understand the need to have money in the bank though - especially if you have storm clouds on the horizons. Maybe splitting it is the best of both worlds a lower bill that will be paid off faster and getting closer to the EF target so that you aren't so far away from your goal.

I too would check to make sure that you aren't in danger of being side swiped by a debt collector , but doesn't sound like it would take you long to pay this one off anyways.

**Palooka** · 02-15-2010, 12:57 AM

Originally Posted by missmanny

For me it is a bit of a false economy to have money in savings and have outstanding bills.

I do understand the need to have money in the bank though - especially if you have storm clouds on the horizons. Maybe splitting it is the best of both worlds a lower bill that will be paid off faster and getting closer to the EF target so that you aren't so far away from your goal.

I too would check to make sure that you aren't in danger of being side swiped by a debt collector , but doesn't sound like it would take you long to pay this one off anyways.

But I really wouldn't call this bill outstanding because they let me make monthly payments and I have been faithful.

It's like a catch 22 though and the way I was raised was to wipe the bill out before savings. I'm leaning towards that anyway, but I'm going to call them first and see if they want to make a deal

Two of our small credit card debts I wiped away first because of the interest and well it's just scary cc debt. And I didn't think twice and knew it was the right thing to do before putting that in savings. I see this a little different, I guess.

Then my silly thinking is that I haven't had an EF for awhile so what's a little delayed.

**2ndGenGranola** · 02-15-2010, 02:50 AM

Originally Posted by Palooka

But I really wouldn't call this bill outstanding because they let me make monthly payments and I have been faithful.

Do you have an agreement with them or have they just not called it in yet?? Big difference. If you don't have an agreement, they could call it in at any time because technically it is an outstanding bill. If you don't have a formal agreement with them, do not assume you are secure. If they are computerized, they could just to a batch call up to send to collections. It is a gamble as to whether someone will check it over or not before sending it (more likely not). Even if it is hand check, you are at the mercy of the office person's mood and ability.

**Palooka** · 02-15-2010, 06:56 AM

Originally Posted by 2ndGenGranola

Do you have an agreement with them or have they just not called it in yet?? Big difference. If you don't have an agreement, they could call it in at any time because technically it is an outstanding bill. If you don't have a formal agreement with them, do not assume you are secure. If they are computerized, they could just to a batch call up to send to collections. It is a gamble as to whether someone will check it over or not before sending it (more likely not). Even if it is hand check, you are at the mercy of the office person's mood and ability.

Yes my agreement is that I pay them monthly and they know this.

I'm not worried because they can't turn me into collections nor screw with me without giving me a 30 day written notice by mail before they even think about(and that would be horrible on their part) collections or they could just stop cashing my checks already.

Lets just pretend I don't have the money and they turned me into collections.... this bill would be the last of my worries. I wouldn't really lose nothing, so to say. But I'm a good person so I will pay it.

(but don't give me an excuse to rant about insurance/us health care system

)

Anyhoo, I'm going to knock this bill out, work on the very high smokin debt, and try to build the EF. I'm thinking this is the right choice. I know I haven't really reaped the benefits of not having the car payment and the extra credit card bills to not pay for in the next month, but looking forward to not having them in the future and dividing the extra green towards debt and paying us first.

Whooohooo, I am feeling a little freerer(is that a word)

**Russ** · 02-15-2010, 07:15 AM

out of sight out of mind. Pay it off and be done.

**Palooka** · 02-15-2010, 07:26 AM

Originally Posted by rcannon

out of sight out of mind. Pay it off and be done.

You mean be done with it already.

Yes out of sight for sure! But I will call them at my leisure, say thursday?

**Greebo** · 02-15-2010, 09:37 AM

With only $650 in the BEF, I would suggest building that BEF up to at least $1,000 - simply as "Anti-Murphy" repellent.

THEN focus on paying off consumer debt as fast as possible with as much intensity as possible.

But that's just how we'd do it.

**Palooka** · 02-15-2010, 09:57 AM

Originally Posted by Greebo

With only $650 in the BEF, I would suggest building that BEF up to at least $1,000 - simply as "Anti-Murphy" repellent.

THEN focus on paying off consumer debt as fast as possible with as much intensity as possible.

But that's just how we'd do it.

So I'm slow and forgive me...

So are you saying not paying the hospital bill in full cuz my EF would be fully funded. I agree with you!!!

**Greebo** · 02-15-2010, 10:04 AM

Originally Posted by Palooka

So I'm slow and forgive me...

So are you saying not paying the hospital bill in full cuz my EF would be fully funded. I agree with you!!!

I'm saying that if you have the $340 to pay the bill but you only have $640 in your baby emergency fund then you should put the $340 in your emergency fund. If you have more than $340, you should put $360 in your emergency fund to bring it up to an even $1,000 and that is your BABY emergency fund (it's not "fully funded" - it's a baby fund).

You then take any money left over and attack debt with what's left.

**Palooka** · 02-15-2010, 10:13 AM

Originally Posted by Greebo

I'm saying that if you have the $340 to pay the bill but you only have $640 in your baby emergency fund then you should put the $340 in your emergency fund. If you have more than $340, you should put $360 in your emergency fund to bring it up to an even $1,000 and that is your BABY emergency fund (it's not "fully funded" - it's a baby fund).

You then take any money left over and attack debt with what's left.

Alrighty, so my deserment was right.

I should just make payments...Until then...put away the rest!!!

**Greebo** · 02-15-2010, 10:33 AM

Originally Posted by Palooka

Alrighty, so my deserment was right.

I should just make payments...Until then...put away the rest!!!

Depends on how much "the rest" amounts to.

And what is a "deserment"?

**my2cents** · 02-15-2010, 10:58 AM

Since the medical bill is small I would contact the doctor to work out a payment plan so that the bill will not be sent to collections; especially if this is a doctor that you may have to use in the future. Also, you may want to see if the doctor / hospital has a charity program which will give you some assistance with the bill.

**Palooka** · 02-15-2010, 11:00 AM

UGH, at this moment i'm not going to make sense.

Love ya all... Should I get some sleep......

nah....

**Pianolady** · 02-15-2010, 11:05 AM

I must be missing something, but if you have an agreement with the hospital, you should plan on keeping that agreement. Is the $340 your total left, or the monthly payment? If you are not going to keep the agreement, you do need to contact them and see if you can arrange a new payment plan. Don't just stop paying or you may find yourself in collections. I've sent in token "good faith" payments every two weeks just to keep them from sending me to collections in the past, and it worked. That's no guarantee though. I don't recommend cutting off the payments entirely.