Americans are used to having a certain amount of debt, either in the form of mortgages, car loans, or mortgages. However, these kinds of debts are usually voluntary. In other words, consumers choose to borrow to cover certain expenses.
One non-voluntary debt is medical debt. Many people become ill or injured and are forced to pay medical bills because they do not have full health insurance (or no health insurance at all). I’m here. In fact, a report by the Kaiser Family Foundation estimates that 41% of US adults have some form of debt due to medical expenses.
Unfortunately, just like a big mortgage or car loan, medical debt can be a huge burden. Thankfully, new safeguards have been put in place to limit the impact of medical debt on consumers’ credit scores, but medical debt remains a problem.
If you owe money for medical bills, you may want to pay off that debt as quickly and painlessly as possible. Here are some steps you can take to make this happen.
1. Talk to your provider about setting up a reasonable payment plan
Many healthcare providers understand that healthcare costs come out of nowhere and place an undue burden on patients. If your medical bills are too high to pay, ask your healthcare provider to put together a payment plan that allows you to make reasonable payments based on your income. Healthcare providers often work with patients who are left with large bills when insurance doesn’t cover them (or they don’t have insurance in the first place).
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2. Try to negotiate a lower bill
Maybe you’re stuck with a $15,000 hospital bill that you know will take years to pay off based on your income. Please check if it is possible. For example, go down to $8,000. The facility you owe money to may negotiate to pay you something if you can prove that it will take you a very long time to pay the bill in full.
3. Consolidate your debts with a personal loan
A personal loan is an affordable way to consolidate and pay off your debt. Personal loans are borrowed in one lump sum and paid in installments at a fixed interest rate. Personal loan proceeds can be used for any purpose, including paying off medical debt. Personal loans often come with competitive interest rates. This is better than other borrowing products. And if you have good credit when you apply for a personal loan, you’re even more likely to get a reasonable interest rate for the amount you borrow.
In many cases, medical debt is inevitable. But that doesn’t mean you have to let your finances go bankrupt. Instead, take the following steps to make that debt more manageable as you pay it off.
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