dave ramsey turq 300KENTUCKY (9/29/13) - This week Dave discusses 'Lumping It' and 'Cut the Health Insurance?'

Dear Dave,
I have $400 in debt on a credit card, and I haven’t made a payment on it in about two years. The debt has been sold several times, and now the amount they’re asking for is over $1,000. I’d like to work something out, but how do I know the collection company that is calling me now is legitimate? - Lorenzo

Dear Lorenzo,
It’s normal for a debt this old to have been sold a few times. My guess is the company that’s calling you is legit, and they probably bought the debt for pennies on the dollar.

Whatever you do, don’t set up a payment arrangement. They’re asking for over $1,000 because they’ve added stuff like late charges and interest. Let’s go back to the original amount of $400 and see if they’ll accept a one-time, cash payment to settle things. Make sure you get it in writing if they accept and don’t give them a dime until after you get the written agreement. Then, once you have the agreement, send them $400. Do not, under any circumstances, give them electronic access to your checking account.

You’ve waited a long time to take care of this, and in the process you’ve made things more difficult. I’m glad you’ve decided to clean up your mess, though. Late is better than never, Lorenzo. Just remember, you’re still responsible for debts you incur—even if the company you originally borrowed from has sold it to someone else! - Dave
 
Dear Dave,
Is it ever okay to stop paying or drop health insurance altogether in order to pay off debt? - Shauna

Dear Shauna,
No! The No. 1 cause of bankruptcy in America today is medical bills, and credit card debt is a close second. That doesn’t mean medical bills only of the uninsured. It also includes money from co-payments, deductibles and the fact that people didn’t have any savings. One accident or unexpected event can leave you with thousands of dollars in medical bills, and that’s even with a good health insurance policy.

I don’t want anyone walking around without health insurance. But I’m not talking about the Affordable Care Act and all the other mandated crap the government is trying to shove down our throats. I’m talking about a solid health insurance plan along with having some money saved. Do this first then you can have all the philosophical discussions you want about whether or not you’re supposed to pay for someone else’s healthcare and upkeep.

At the end of the day, it’s absolutely vital that you have your own health insurance. I hope I haven’t been unclear on this topic! - Dave

Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
 

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

1 DOW 18,024.06
+183.54 (1.03%)    
2 S&P 2,108.29
+22.78 (1.09%)    
3 NASDAQ 5,005.39
+63.97 (1.29%)    

Most Read This Week

April 28, 2015 4094

Search for Stolen Vehicle Ends with Woman Charged…

by SurfKY News
April 27, 2015 3438

Online Petition Seeking Re­opening of Shanice…

by Samantha Carver, SurfKY News
April 28, 2015 3300

Man Charged with Stalking Smoke Shop Clerk

by MPD
April 27, 2015 2853

Hopkins County Drug War ― Are We Winning?

by Doreen Dennis, SurfKY News
April 30, 2015 2741

Family Says 'Goodbye' to Dog After It Allegedly…

by Doreen Dennis, SurfKY News

Most Read This Month

April 17, 2015 15389

An Open Letter from an Addict

by Olivia Kirks
April 23, 2015 8436

Man Charged with Sodomy, Incest/Victim under 12

by SurfKY News

Stories Trending Now

May 03, 2015 1090

Two Injured During Two-Vehicle Collision

by SurfKY News
May 02, 2015 582

Baptist Health Hosts Annual ‘Bike Safety Day’

by Gary Gates, SurfKY News
May 03, 2015 536

Faith Baptist Hosts Family Fun Day

by Tammy Holloway, SurfKY News
May 03, 2015 516

Dave Says - May 3, 2015

by Dave Ramsey
May 02, 2015 455

Conquering the clutter: Cleanliness with kids is…

by SurfKY News
May 03, 2015 368

Legislator's Log - Week of May 3, 2015

by Brent Yonts
May 03, 2015 324

2015 Correctional Employees' Week Celebrated…

by Michael Caudill
May 03, 2015 317

Outdoor Truths – May 3, 2015

by Gary Miller
May 03, 2015 292

Keeping the Faith - 'You Are Stuck With You'

by Ronnie McBrayer
May 03, 2015 198

State Registered Nurse Aide Pinning Ceremony at…

by HCS Publication Team