On Paying Past Due Bills

That is fine, if you see that you can make the actual minimum payment due. I am, of course not, saying that you should totally skip out on your obligations to pay a debt.

What i am trying to clarify here, is the fact, that any type of payment is legal, and certainly better than none at all.

I mean, look at how many people are literally starving, in order, to keep their bills paid. Many of them do not know how to deal with phone collection agencies, and just like a certain 80 year old man, that i talked to recently, he feels terroized by the calls. He quicly gives in, just to make them happy.

True enough, you can report them by calling certain places. But the sad fact is, the credit collections and other companies still use these tactics, even though they are illegal. 

I disagree with some of your post.

Yes, you should pay the necessities first: mortgage, car note, insurance, utilities, groceries, etc... 

However, when it comes to credit cards and hospital bills, while you do have legal rights, they vary from state to state. No, they cannot threaten, harass, insult, etc to get you to pay more - that is illegal in any state and you can file a complaint with the state attorney general's office. 

As a matter of fact, the NYS attorney general has cracked down on collection agencies in Buffalo and is in the process of closing them.

As for hospital bills, contact the hospital business office - they can usually make adjustments, payment arrangements, and sometimes even write the bill off altogether depending on your insurance/financial circumstances. 

As for credit cards, again, make the minimum payment to the credit card company - if possible. If it is a debt collection agency, you can sometimes still make payments to the original company ( depending on how old the debt is)  other times the debt may have been sold to the collection agency and therefore you are liable for the balance to the agency.  Again, contact your state attorney general for the correct information on how to work with a collection agency.

Always keep track of payments made, who you talked to, when you talked to them, and what was said. If you can record the conversation - even better! 

Finally, never, EVER rely on a "system" to clear up your credit! You hear advertisements for proven systems to reduce or eliminate your debt overnight - SCAM!!!!

If you ever see an ad for a "proven system" for anything - walk away -don't waste your money - the only one making money in that situation is the person selling the system... 

They will never accept your proposal on the phone. They are more interested in getting all the money they can. They will even go as far, as insulting, threatening, and anything else, just to get you to pay out more, than you can afford to.

You are welcome.

You can actually pay the mininum amount due, if you can afford to. Many of the people have shown that they are running into trouble by using that method, and leaving themselves with little to no cash.

However, by state law, if a company accepts a payment from you, regardless of the amount, then you have in all good faith made a payment. It is essential to keep your receipts and payment stubs showing any and all payments that you have made.

If you make a payment, and they refuse the payment, you have rights, under the law. Keep all letters, including the returned check or money order. You will need this as proof, that your payment was indeed rejected. 

I disagree with the credit card info they will not take less than the minimum amount

Even Suze Orman changed her views and said better to pay minimun amount and have cash on hand in the bank. But cc companies are reducing the rate available if you don't pay it off.

Great advice! I seen this happen with me and others and it works well. Thanks for the information.