Some Guidelines to Get Relief from Medical Bills

When it comes to bankruptcy, medical debt is one of the leading causes, the only cause that is greater is loss of a job. Don't be a statistic and file for bankruptcy if you are plagued with medical debt! .  Most individuals with medical debt don’t realize that there are multiple ways to solve medical debt other than bankruptcy. All options should be exhausted before filing for bankruptcy. Below is some advice which can help you pay off or deal with your medical debt instead of going bankrupt.

Don’t be pressured into moving medical bills owed to a credit card

Avoid moving any medical debt you have to a credit card. Moving the medical debt to a credit card is not a good decision because usually the interest rate on the balance will be much greater than if you carried the debt with the medical provider. Moreover, usually the interest rate is lower on medical bills versus a credit card. Also, if you transfer the medical bill/bills balance to a credit card you usually will significantly reduce your likelihood of getting approved Medicaid. Medicaid eligibility is mainly determined by amount of gross income. Therefore, any medical debt you have lowers your gross income whereas any credit card debt you have will not lower your gross income.

Be proactive and stay on top of your bills

Secondly, try your best to make timely payments towards the medical debt. Missing payments can negatively impact your credit and will most likely result in additional fees and interest. Being more diligent with payments the better chance you have of preventing your credit score from declining.

Negotiate payment plans if unable to pay and/or work with credit counselors

If you are unable to make payments call the hospital or doctor's office you have medical bills and try to negotiate a payment plan that fits your budget. Keep in mind that they would much rather negotiate with you and have you make payments or pay less than have you go bankrupt and not receive any money at all. If you feel more comfortable, have a debt settlement or credit counseling company do this for you. These companies are experts in negotiating with creditors (hospitals, third party billing agencies, collection agencies etc) to either help you get a more reasonable payment plan and even sometimes negotiate your total medical debt to a lower balance amount.

Consider charity organizations for help

Many charity organizations may help you to end your medical debt. Most organizations are more willing to help those that are extremely in need and have exhausted all other options.

Pay for medical bills through Medicaid

If possible look to apply for Medicaid. Medicaid is a dual sponsored program by federal and state funding. Each state offers Medicaid and the plans vary from state to state. Try to research the state you are considered a resident of and see if you would qualify for Medicaid. Depending on your state,  past medical bills may be covered or partially covered by your state Medicaid plan.