Debt Consolidation For Medical Bills
Debt Consolidation For Medical Bills
If medical bills are making it difficult to pay your bills, don’t lose heart. There
are solutions for America’s medical debt crisis. This is a serious
problem. Medical expenses are more than $3.6 trillion annually, which is
approximately $11,200 per individual.
A 2019 Salary Finance study found that almost one third of Americans have
outstanding medical costs. 28% owe more than $10,000. Good news is that you
can repair your bank account.
You can combine medical debt. Are you interested in applying for government
assistance? Is it possible for you to obtain a loan to pay off medical debt? Are
you considering declaring bankruptcy?
It is enough to look at all the options that give you headaches. You shouldn’t be
given Tylenol if you are in a hospital. It can cost as much as $15 to get one
Here are some quick tips to help you get rid of your medical debt.
You are not the only one with outstanding medical bills. They account for more
than half the invoices sent by creditors to collection agencies, according to the
Consumer Financial Protection Bureau.
The hospital or healthcare provider may sell your bills to a debt collection
company if you fail to pay. This is followed by harassment and credit
It is against the law for debt collectors to harass you or contact your at all hours
of night. It is impossible to ignore them as they could harass you and bring suit
Collection agencies can damage your credit score and make it harder and more
expensive to get a loan in future.
Although medical bills don’t carry the same
weight as other debts, they can remain on your credit report for up to seven year
if they aren’t paid.
You must devise a strategy for dealing with these situations before they happen.
Medical bill consolidation
You’re probably familiar with the concept of a “bill” in hospitals. There are
many medical “bills” It can be difficult to keep track of all the medical
“bill” Customers find consolidating their debts and paying one monthly
payment more convenient.
These are the best debt consolidation options
Program for Debt Management
Credit counselors work with creditors to reduce your monthly interest payments
by joining a non-profit program.
Interest charges are not attached to medical invoices. People who pay medical
bills using credit cards, or have other debts to combine with them, often use
debt management services.
Counseling for Credit
The same nonprofit credit counselors will review your finances and help you
create a budget.
They also have a strategy to help you pay off your medical debt
within 3-5 years. The counselors will then work with your healthcare creditor in
order to get their approval for the plan.
You can borrow money from a bank or credit union to pay off current debts or
for other scheduled treatment.
Personal loans are usually unsecured. This means that you don’t need to provide
collateral such as your home to be eligible. If your credit score is poor, you
might be required to apply.
How to get a home equity loan
You can borrow money against equity that you have in your home if you have a
mortgage. Most loans are exempt from tax and have low interest rates.
You’ll have to pay an unsecured loan along with a secured asset (your home,
credit card, or medical bills). If you don’t pay, your home could be at risk.
Benefits of a Medical Debt Consolidation Program
You can combine your medical and credit card bills into one monthly payment to
simplify your bill-paying process. This will allow you to stay organized and
You may be able to pay off medical debt faster and more frequently if you
incorporate it into your debt management plan.
Regular, on-time payments as required by a debt management program may
improve your credit score.
You may even be able to add your medical expenses to a DMP if you are already
enrolled. Although it won’t make any difference to how much you owe in terms
of the amount, it can be easier than sending checks to multiple doctors and
There are other debt relief options for medical expenses
Debt consolidation is an option for those who want to reduce their medical debt.
However, it is not the only choice. There are many other options, including
reviewing your bill carefully for errors as a pathologist would for a brain tumor
or filing for bankruptcy.
Examine your Medical Invoices for Accuracy. According to a 2018 study by
Medliminal (a company that aims to reduce medical expenses), 99 percent of
medical bills contain errors.
Examine your bills for errors such as duplicate
billing or overcharging. It may be worth contacting a medical billing advocate
to review your account if it is large and complicated.
Negotiate your medical debt. Don’t accept the bill as is. If you have financial
hardship, you may be able reduce your medical debt and set up a repayment
Ask for a payment plan: If you don’t have insurance, the deductibles or other
costs could make it impossible to pay one monthly installment. Splitting the
cost into equal monthly payments is the best option.
Take into account Bankruptcy. According to a 2019 study published in American
Journal of Medical Health (the American Journal of Medical Health), medical
debt was responsible almost 67% of bankruptcies.
Because they are unsecured,
medical expenses can be easily wiped out. However, bankruptcy can ruin your
credit score and remain on your credit report for ten years.
You can check to see if your eligibility for government assistance. Non-profit
hospitals have a legal obligation to provide financial assistance to patients with
Medicare may be available to help you pay for medical expenses if you are 65 or
You may be eligible to Medicaid, the largest provider of health insurance
in the country, if you’re under 65.
Is debt consolidation for medical debt right for me?
This is the $29,000 dilemma. That’s the average cost of hip replacement surgery
in the United States. It is nearly $10,000 more than that of Australia. You’d pay
approximately $18,000 more in the United States than you would in France.
From your hospital room, you might be able view the Eiffel Tower.
If you’re able to get three hours of uninterrupted coffee and understand why
healthcare costs in America are so high, you can explain the reasons. But right
now you just want to know if it makes sense for you to combine your medical
To get a better answer, ask yourself these questions:
Are you currently paying interest on a loan that you took out? Oder, worse, did
the loan amount exceed your credit limit?
It is possible to pay off medical debt and still meet your monthly financial
obligations, such as rent, food, and vehicle payments.
Do you think it is better to file bankruptcy and start over, or combine your debts
and eventually erase your debt?
These are difficult questions to answer. If you need help sorting out your
finances, talk to a professional credit counselor at a non-profit credit counseling
agency. You might find sound advice is exactly what you need.