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Minimum Payments to Avoid Collections

Is there any truth to if you pay just $5.00 on your credit card bills that they can not turn you into a collections agency?

Lynette from Ann Arbor, Michigan

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Answers:

Minimum Payments to Avoid Collections

The credit card bill tells you the minimum that you have to pay. Depending on how big your debt is and paying the minimum amount can stretch out your credit debt for years. For example, if you owe $15,000 the minimum payment is $375, it would take 423 months to pay off your debt providing you did not make any further charges. You can go to www.bankrate.com to figure out how long it would take to pay off your debt at minimum payments.

By Harry

Minimum Payments to Avoid Collections

I would advise you to buy a book entitled "How to Settle Your Debts Without Committing Financial Suicide" by Norman H. Perlmutter. You can get it on Amazon for $12.89.

By Patricia Eldridge

Minimum Payments to Avoid Collections

Dave Ramsey's book and website offer counseling on this issue.

By Ellen Stringer

Minimum Payments to Avoid Collections

You definitely need to pay the minimum amount due on credit card or loan payments! Even doing that is going to affect your credit in a negative way if you have a high amount due. The law about a five dollar minimum payment pertains/pertained only to medical bills and that law may have even changed over the past few year!

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By Ann

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December 5, 20170 found this helpful

Id like to get this answer as well. Im sure its different state to state, but if I wanted to find out for Arizona what the minimum amount for a hospital bill is.

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April 19, 20180 found this helpful

Are u saying if I pay &5 month to my doctor Im ok. Do I have to call and arrange it? Suppose they wont accep that amount?

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October 11, 20180 found this helpful

I have been paying on a medical bill for a while now, they have excepted these payments even though we don't officially have an agreement. They have sent the remaining balance ( less than 300.00) to a collection agency. Can they do that? I am in Georgian USA.

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October 11, 20180 found this helpful

Yes, I believe they can. I have been sent to collections for a small amount like that. (Oregon).

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I think the idea of making minimum payments to avoid collections is a strategy rather than a rule. Many places will keep the account as long as there are small payments coming in. But I think they have the right to send it to collections if any of the original payment plan is not followed.

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