Medical debt is increasing as the population continues to remain uninsured and under insured. The cost of medical procedures, maintenance programs and prescriptions are weighing heavily on many people’s finances. Not paying your medical debt will only get you into a troubling financial situation. Here are some ways that could help you out of debt and on towards financial success.
Did you know you could negotiate medical debt?
This process takes some finesse, patience, and a persistent drive. Not everyone in the doctor’s office are aware of billing procedures. It is up to you to find the right connection whether in the office or billing department. You will need to approach each individual with a polite approach. If you start getting impatient or frustrated, you will not find people who are willing to help you so readily.There have been many success rates for people negotiating medical debt to a lower price.
If you are uninsured, you may speak to someone in billing before have medical service performed and find out if the doctor has cash patient rates. It is often found that rates are discounted from the beginning if you are willing to pay at the time of service. This of course helps only if you have the money at the time.
Do you have room on your credit cards?
Transferring medical debt on to credit cards will help break the payments down into smaller bits. The downfall to this options is if you are not able to pay them off in a decent enough time, your interest payments alone will make this an expensive option. Whether you put the amount on one or several cards, the plan is still to pay them off as fast as you can. If you are considering applying for Medicaid, thinking it will help you with the bill don’t make the transfers. Once the medical debt is on your credit cards, it is no longer considered medical debt and will reduce your chances of receiving help.
Have equity in your home?
If you answered yes, you have an option to consolidate your debt using a home equity loan. These loans usually carry lower interest rates and make payments easier to handle. One thing to consider is, if you already have a mortgage, you will want to make sure you can afford both monthly bills or try to refinance the loans into one.
Have you considered bankruptcy?
Bankruptcy is always considered a last option for it has many repercussions for filing. With this being said, medical debt is a major cause of this action taken in the courts. One big problem with filing before other solutions have been attempted, is that it does not get to the nature of the problem. Getting financial problems out-of-the-way is handy, but if you do not understand why you are in debt not have learned how to keep yourself from falling into the same position, bankruptcy is not going to help long-term
Have you tried credit card counseling?
When you are not aware of how to handle your finances, there is help for you. Most of the companies are non-profit and can offer great advice on how to build a budget and manage it correctly. Make sure that the company you go to has certified counselors who have training with consumer credit, managing debt and budgeting.
Being educated on financial matters will help you throughout your life as you build back your credit.
Spotya! Cash Advances are solutions for small money matters. Finding solutions before the problem grows big is a great way to help secure your financial future.
I am a Blogger, Web Content Writer, Teacher, Mom. A woman of many hats. As an elementary teacher, I had always encouraged my students to write more. I find myself falling back on my own teaching techniques to share what I know about building and rebuilding personal finances.