Medical debt is increasing as the population continues to remain uninsured and underinsured. On the same note, the cost of medical procedures, maintenance programs and prescriptions are weighing heavily on many people’s finances. Understand that not paying your medical debt will only get you into a troubling financial situation. Should I take out an online payday loan to pay off my debt? Firstly, there are some options, so you might want to consider these ideas. Moreover, here are some ways that could help you out of debt and on 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 is 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 countenance. If you are uninsured, you may speak to someone in billing before having medical service performed to determine if the doctor has cash patient rates. Often times 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 onto credit cards will help break the payments down into smaller bits. The downfall to this option is that if you cannot pay them off in a decent timeframe, 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. Maybe 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?
Consider bankruptcy your 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 has been attempted, is that it does not get to the problem’s nature. Getting financial problems out-of-the-way is handy, but if you do not understand why you are in debt, you have not 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.
Online payday loans or 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.