10/26/2016
Poor Credit -
Many times when a person uses a professional or contractor s/he may owe a balance on the bill. This includes doctors, lawyers, accountants, and other professionals whose fees may not be covered by an insurance policy, or are totally not covered, or the contractor who re-does your bathroom and runs into unexpected (and potentially costly) complications.
A word of wisdom - Go To The Provider And Work Out A Payment Plan!
Most businesses are simply seeking to be paid, and are not looking to be involved in litigation, or even to charge interest.
A reasonable and manageable payment plan may save you a lot of time and money in the long run. For example, if the business needs to sue you and takes a judgment against you, it could affect your ability to borrow money for other items such as a vehicle or home. One example of somebody that I worked with is a 30-something who had developed poor credit. He purchased a vehicle and was charged 12% interest! As you know from the many commercials on TV, there are often low to no interest loans on vehicles. In this example, a $30,000 loan for five years at 12% will cost interest of $10,040. While you may think that ducking bills saves you money, in the end it can be more costly as the $30,000 car now just cost you $40,000!
