I Have a Credit Card I Used For Medical Debts. I Want The Debt Cut in Half. – Cathy


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“Dear Steve,

I have a credit card used mainly for medical bills over the years , I owe $17,000 on it and have not charged anything on it for 4 years. I pay more than minimum payment

How can I get it paid off or cut in half


Dear Cathy,

If you want to get it paid off, all you have to do is send $1,000 a month for 17 or so months. I think you know that to pay it off you need to send the total amount owed.

You might be able to get the amount you owe reduced, but it will really hurt your credit and leave you with some potential IRS issues. You can do this by looking into debt settlement. However, I am not a fan of monthly payments to accumulate debt settlement funds. In this approach your credit goes unpaid and you wind up in collections, you can be sued and your credit is ruined for a long time.

If you have $9,000 or so in cash laying around, then you could probably do a lump-sum debt settlement and be done with the debt. But even this approach has some nasty consequences. The debt written off as uncollectible by the credit card company will be reported as a bad debt on your credit report and you’ll owe income on the forgiven amount, just as if you earned it.

There is wand to wave to get your bill cut in half, because you might not want to pay it.

If you do decide that you’ve got cash on hand and want to settle your debt now for less than you owe, use a professional debt settlement agency to do this for you.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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