Consolidating Medical Debts

It is a fact of life that people get sick. Sometimes we even have to be hospitalized or receive special care. The bills seem to add up quicker than you can blink. If you are faced with medical debt, you need a way out.

Unfortunately medical debt can affect your credit. At the time, we are preoccupied with the health of our loved ones, but at some point we will have to face the mounting pile of bills. There is help, though.

When you first notice that you are going to have trouble paying what you owe, make a few phone calls. If the bill relates to a hospital stay, call them. Tell them your situation and ask if there is any way that you can enter into a payment program. It is also good to calculate ahead of time the amount you can pay with ease.

Doctor’s offices are also approachable for debt payments. A good rule of thumb here is to check with your doctor’s office before securing services to see what their payment options are. Many offer a credit program that extends a personal line of credit (after applying and qualifying) to the patient for the express purpose of paying medical bills. If you don’t qualify, ask about other options for repayment.

Use your credit cards. This needs to be considered carefully. Many credit cards offer no interest rate for the first twelve months. You can pay the medical bill and use that first year to devise a plan for getting the credit card paid off before the accumulated interest kicks in.

A loan will help you do two things: consolidate your debt and set up satisfactory payments for you. Banks and especially credit unions offer interest rates that are lower than credit cards or medical credit programs. You can decide which day of the month your payment is due and also negotiate how long you have to pay back the loan.

It also can’t hurt to check again with your insurance company. Go over your insurance policy with a fine-toothed comb to be sure that you know what is covered by your policy and at what percentage. Check to see where in the process your claims are and if denied, appeal the ruling. This can be done while you are investigating other means of assistance. There might be something that was overlooked or a form that didn’t get filled out.

Don’t neglect the government. Federal assistance may be available to help repay medical debts. Does your loved one qualify for Medicaid? If they do, then any outstanding medical debts can possibly be repaid after you apply for assistance.

You can work through a debt consolidation agency to make this happen if you lack the time and the know-how to do it yourself. Before signing any documents though, talk to a medical debt counselor. They will give you a list of resources based on your financial situation that can be helpful, and it costs you nothing to participate.