Don’t Ignore Medical Bills
Although accumulating medical debt can be distressing, it is essential to monitor healthcare costs and at least acknowledge bills as they arrive. You may have an opportunity to address the debt even if you currently lack the funds to pay it off, preventing matters from worsening.
Ensure No Insurance Coverage
Sometimes, insurance companies ask you to pay costs that you aren’t responsible for. Don’t assume every bill is correct. Medical billing is complicated, and there are several chances for errors that could lead to valid claims being denied. If you suspect you are being billed incorrectly, contact your insurance company immediately.
Check if You Qualify for Medicaid
The Medicaid program provides health coverage for low-income individuals. It is the largest provider of coverage in the United States. If you qualify for benefits, Medicaid may offer vital relief. Eligibility may depend on the state you live in, so check with Medicaid for the details.
Negotiate Medical Debt Relief
It may be possible to pay less than what you owe and settle your debts by offering to pay what you can afford at the moment. Medical providers and debt collectors may be willing to accept your offer rather than attempting to collect the full amount (perhaps futilely) later on.
Consolidate Medical Debt
If you have unpaid medical bills with multiple creditors, it may make sense to consolidate that debt. When consolidating, you combine all your loans into a new single loan with better terms if possible. The result is one payment that can be easier to manage.
Personal Loans
With a personal loan, you borrow the amount you need to pay off all your debts, converting your loan balances into the personal loan. Typically, you repay the loan over a period ranging from one to five years, but terms vary by lender. During that time, you usually have a fixed rate, making your payments level and predictable.
Credit Card Offers
Credit card offers may provide zero interest for a limited time. If you qualify for those offers and can pay off the balance before the card starts charging interest, you can avoid additional interest fees. However, you may need to pay a balance transfer fee (or similar) to use the credit card offer.
Dealing with Debt Collectors
Debt collectors may seek payment even when you are unable to pay. If you want to prevent constant collectors from asking for money, you can send a request to stop and cease communication. This action does not eliminate the debt – the loan balance remains due, even if collectors stop contacting you – but it may provide some peace of mind while you try to resolve matters.
Get Help for Your Medical Debt
If you are overwhelmed with medical debt, you may benefit from professional assistance. Non-profit debt counseling agencies can help you understand your situation and may be able to set up a debt management plan with creditors. With this approach, you might make a single monthly payment and receive waivers on fees or lower rates on your debt. Check our list of credit counseling agencies for ideas on whom to contact.
Frequently Asked Questions (FAQs)
What happens if you don’t pay your medical bills?
Ignoring medical debt can impact your credit rating and financial standing, but you won’t go to jail for medical debt alone. If you commit another crime in an attempt to avoid medical debt, such as failing to comply with court orders related to a debt lawsuit, you could find yourself in jail.
How many
How long do medical bills stay on your credit report?
Medical debts, like most negative information on your credit report, drop off after seven years. If the information is inaccurate, or if you reach a settlement on the debt, you may be able to have it removed sooner.
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Source: https://www.thebalancemoney.com/how-and-where-to-get-medical-debt-relief-4689166
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