I have over $50,000 in medical bills that I paid with a credit card. Did I make a mistake?

After reading an article by a local newspaper writer, I acutally agreed, which is very seldom.

It seems the person was involved in an terrible auto accident and had no medical insurance.  After all was said and done, she owed over $50,000! Having no insurance, she decided to pay it with a credit card. Now, the credit card has raised it's interest rate and her credit score has declined as she has a terrible debt-income ration.

Some things to consider:

If she had not paid her bills with the credit card, she probably could have negotiated a much lower settlement amount!

Most medical providers are willing to take payments and in some cases, very small payments.

Most hospitals have charity programs that she may have qualified for. lf so, most of the bill could have been taken card of.

Now that she has paid the bill with the credit card, can she afford $1,000/month (approximately the 2% minimum payment due) each month?

Even if she can, how much will she actually pay if she pays it off?

Using one of several credit card calculators available, given the best case scenario that she could pay $1,000/month and never miss a payment, it would take her over 8 years and almost another $50,000 in interest to repay the card.

If she cannot afford the $1,000/month for 8 years and starts making only the minimum payments due (credit card company's nasty little gimmick), it could take her 86 years (according to the calculator) and almost $187,000 in additional interest!

She may need to consider filing for bankruptcy.  At any rate, she should consult a bankrutpcy attorney or a professional debt management company for more information.