Which to pay first, hospital bill or CC?

**Shantyel** · 10-07-2010, 07:13 PM

Hopefully this is the right area of the forums to ask this question.. Hubby and I are both working and desperately trying to make ends meet. This past summer our 12 year old son fell and broke his nose; after surgery/deductible/misc fees, etc we have a 3,000.00 hospital bill to pay. We also have two credit cards, one with a 4300.00 bal and one with a 1452.00 bal (both with ridiculous rates of course). We are trying to choose one for a snowball plan and start paying it down but not sure if its better to pay hospital first or cc first?

Thanks in advance..

**Russ** · 10-07-2010, 07:57 PM

How big will your snowball be?

Typically, when snowballing debts, you would pick the lowest amount first with the thinking that once rolling you will be encouraged by the progress and continue.

**Palooka** · 10-07-2010, 08:15 PM

If it were me, I'd be working on that smallest credit card balance first, simply because the hospital/doctor bill doesn't draw interest.

**piney** · 10-07-2010, 08:20 PM

I have both cc bill and 2 hospital bills so i am paying more on cc bill because of high interest rate. If hospital is not charging interest i would pay a smaller amount to them each month until i had cc paid off then pay them more.Just my thought others may tell you different.

**Shantyel** · 10-07-2010, 08:36 PM

I actually would like to start paying on the lower cc first.. it's not so much as how much I can pay it was just that I didn't know if it is smart to leave a hospital bill being paid back so very slowly while trying to attack a stupid cc... kwim? but my question has pretty much been answered, thanks!

**Palooka** · 10-07-2010, 08:45 PM

The 3000.00 hospital bill is probably not just one bill, right? I assume there is a doctor bill, lab, hospital, etc. Separate bills that add to 3000? If so, I'm sure they will want you to set up a certain payment plan a month with them...Hopefully they will work with you.

**Shantyel** · 10-07-2010, 08:52 PM

Originally Posted by Palooka

The 3000.00 hospital bill is probably not just one bill, right? I assume there is a doctor bill, lab, hospital, etc. Separate bills that add to 3000? If so, I'm sure they will want you to set up a certain payment plan a month with them...Hopefully they will work with you.

The 3000.00 is what is left after everything else was applied. I've managed to pay all the others like the lab fees, anesthiology, etc. Unfortunately our insurance has a steep deductible and his nose required major restructuring so, yeah, 3000.00..

**Palooka** · 10-07-2010, 09:05 PM

Originally Posted by Shantyel

The 3000.00 is what is left after everything else was applied. I've managed to pay all the others like the lab fees, anesthiology, etc. Unfortunately our insurance has a steep deductible and his nose required major restructuring so, yeah, 3000.00..

Oh okay, bummer. I was thinking it might be cheaper per month for you if they were broken up in separate bills. Have they demanded how much they want from you a month, or are you just paying what you have and they are being cool?

I once payed a doctor bill off that was over 700 bucks, 10 bucks a month and they was nice to work with me.

**Shantyel** · 10-07-2010, 09:27 PM

Originally Posted by Palooka

Oh okay, bummer. I was thinking it might be cheaper per month for you if they were broken up in separate bills. Have they demanded how much they want from you a month, or are you just paying what you have and they are being cool?

I once payed a doctor bill off that was over 700 bucks, 10 bucks a month and they was nice to work with me.

So far, they have just been taking what I've sent to them and haven't said anything yet. They do have on the bill where it says "if total payment is not possible, a monthly plan will be set up" but they have yet to demand anything. Since I've pretty much decided now to focus on the cc bill I will call the hospital and set up the lowest amount possible for now. For some reason I just feel bad, just feel like I should be paying them and not those credit card morons.. ah well.

**Palooka** · 10-07-2010, 09:31 PM

Just do the best you can and I forgot.... Welcome to FV.

**frugalwarrior2** · 10-08-2010, 12:25 AM

Call the hosp. and get on a payment plan. Offer $50. per month,no interest. Then start slamming the CC. Smallest first.
We did this for 5 years. We owed $$$$$$$$$$ to medical not $3000. When you get towards the end of the hosp. bill make an offer for less. A lot of times amts. are set in stone. It won't negatively effect your credit score. In the mean time I would see about a lower rate signature loan from a credit union for the larger CC if the rates are over 10%. (and I imagine they are).
Make sure you get $1000. set away for minor emergencies so you can leave the cards alone.
We did exactly this and are debt free. luck to ya!!

**frugalfranny** · 10-08-2010, 12:33 AM

Go for cc first............the medical is usually really good to work with you............if no interest, I would keep paying a minimal..........they usually like to have something!

(I have a friend that pays $10 a month......with no comments.)

**Darlene** · 10-08-2010, 07:44 AM

I'd call the hospital and see what you can do and I'd definitely pay them something. If I were owed money I'd want to be paid, you would too.

Who knows, they may even cut your bill in half if you could scrounge up the money to pay them off. It really does happen & get it in writing.

Whatever you work out with your hospital, I'd aggressively attack those cc's because like others said the interest is a major bummer.
Good luck!

**cuteoldlady** · 10-09-2010, 04:48 PM

I had an emergency c-section and owed big time to the hospital, no ins. and was paying them $5 a month or more when I could, DS was finally all mine when he turned 14

It NEVER showed on my credit statement and I never made "formal" arrangements with the hospital. I had saved the bills and mailed a copy of them with the history of previous payments along with the current payment and gave them my balance. When all was said and done I called the admin at the hospital and confirmed all had been payed - I ended up paying about $.30 over. They sent me a statement all was clear.

Pay credit cards first, but send at least $5 - $10 a month to the hospital. As long as you can show good faith in attempting to pay your hospital bill, they are great at working with you.

**Luckybustert** · 10-09-2010, 05:57 PM

Do not let the hospital bill sit....make at least small payments on it, or they will turn it over to collection and you'll be a) harrassed by a collection agency and/or b) the collection agency will file a court claim against you and/or c) BOTH.