Medical debt is different from other debts because it is for a service or treatment which you needed to undergo out of necessity. It occurs accidentally. People do not plan to get sick and hurt themselves. According to a CNBC report, two-thirds of Americans say that medical issues are the reason why they filed for bankruptcy. Moreover, according to a survey by the New York Times, one in five Americans state that medical bills caused financial issues for themselves. In general, it is provided by the medical service provider.
How To Deal With a Medical Debt
Sometimes debt collection agencies attempt your debt. They may suggest you pay the medical debt by a credit card or by taking out an individual loan. Using a credit card to pay your debt is not an effective solution. When you pay with a credit card your payment will be shifted away from the hospital where your bills may have a low-interest rate. So, if you start paying with a credit card your expenses will be enlarged. Putting the costs on a credit card means the hospital has been paid, which takes away its incentive to negotiate a lower bill or help you get on a payment plan. Every state has its laws and if you leave your medical debt unpaid, the provider could take legal actions against you.
Ask For a Repayment Plan
If you aren’t able to pay your medical bill, ask your provider for a payment plan with little or no interest before paying the bill with a credit card. Once you’ve paid with a credit card, you’ll no longer be eligible for a payment plan. Always make sure the charges and services you are being billed for are correct. Not correct information can cost you money and time. Look at your overall debt repayment plan. Sometimes people have other debts and they stand in front of different issues connected with the payment. If you cannot manage your debt, money managing companies can help you. Maybe only tracking your daily expenses can help you. There are also expense tracking applications such as ExpensePie.
Apply For Financial Assistance
Luckily, hospitals do offer financial assistance, but each has its procedure. At some, you have to apply for Medical aid first. If you’re rejected, then you apply for help from the hospital. Here is a list of some medical assistance programs that will help you pay your medical bills.