Dave Ramsey is a seven-time #1 national bestselling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.
Dear Dave,
I recently had a judgment filed against me for an unpaid, old hospital bill. Is it possible to negotiate things with the lawyer? Originally, the charges were $2,700 but now they have increased to $3,500, and I am not sure why the amount has risen. I have made several phone calls asking him for a detailed statement of the account, but all I have receivedisapayment booklet. What is your advice?
Ronnie Dear Ronnie,
Are you sure you’ve been speaking directly to the lawyer? I’m guessing the reason you haven’t gotten a real answer to your question is because you’ve actually been talking to some low-level staffer or paralegal. If you have been talking to the lawyer, there’s a pretty good chance he’s running a small debt collections or debt lawsuit machine. If this is the case, he probably gets a piece of whatever he collects. That means he’s out to collect as much as possible, as quickly as he can.
You might consider changing tactics, and see if you can talk to the hospital administrator. Propose giving them $2,000, or whatever reasonable amount you can afford, on the agreement that the hospital accept it as payment in full. Hospitals and doctor’s offices are often some of the easiest folks to
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work with when it comes to paying off debt, but people have to be proactive and makeanhonest,good faith effort to make it happen.
There’s a moral, as well as legal, responsibility involved when it comes to paying off bills or debt, Ronnie. You should always pay what you owe if at all possible.
— Dave Dear Dave,
I own a duplex that has an opening for a tenant, and an old college buddy wants to rent the apartment. He has always been a good friend, but I’m a little worried about the possible effects on our friendship if business is brought into the picture. Do you have any advice?
Justin Dear Justin,
You can make this work, but you’ll both need to be careful. It’s going to take a lot of honesty and maturity from you both.
Doing business with friends always comes with the risk of running into a situation that can damage the relationship. Am I saying never do business with friends? Of course, not. I do a lot of business with friends. I just make sure all the specific requirements and expectations of the business relationship are laid out in clear detail, in writing, and fully understood by both parties before a deal is struck.
Sometimesfriends have unrealistic expectations when it comes to doing business together. The friend who’s renting may think the friend who is the landlord will give him a pass if the rent is late, and on a dozen other things. The friend who is the landlord may think the renter will be a perfect tenant, because they’re friends, and find out the hard way his buddy’s a slob who doesn’t respect and take care of the property. All these things should be ironed out ahead of time and before the agreement is signed.
You might want to make sure, too, he understands the need to come talk to you if a situation arises where he may be late with a payment, or not be able to pay the rent one month. Most issues like this can be worked out, but he needs to understand — and it’s your job to tell him ahead of time, in a kind-but-firm manner — you’re not running a charity.
Just be friendly, straightforward and businesslike. If you have to enforce the rules, do it consistently and with fairness. Likewise, if a situation pops up where a little grace and understanding are appropriate, provide those as well.
— Dave