Three Options For Medical Bills

If facing a severe health crisis were not bad enough

, many men and women are also left with significant financial pressure due to health issues. The sad fact is that the vast majority of all bankruptcies that are filed this coming year may be the immediate consequence of excessive health-related expenses. You have 3 main alternatives if you are currently struggling with medical expenses that you cannot handle. You may settle your debt, seek a medical debt consolidation or you can seek bankruptcy relief. Lets look at your 3 alternatives so that you can best determine what the right option for you is.

One option for handling your healthcare bills is personal debt negotiation. This calls for you working with the collector to find a mutually agreeable sum that they'll accept to consider the account satisfied. The amount which you can save will vary depending on your situation, however typically will be 40% to 60% of what you are obligated to pay. There are debts settlement firms that specialized on working with individuals with excessive debt, but you may want to consider handling negotiations on your own. The personal debt negotiation industry is highly not regulated, and many professionals believe that the overall industry is a sham. This is because the majority of firms charge you up to 20% of the total amount which you owe and they keep this money regardless of whether they achieve an arrangement on your behalf.

Another option which can help some men and women bring their monthly payments down to a more manageable level is healthcare debt consolidation. Although it can be a great way to avoid collection calls and save your credit, one thing you should understand is that when almost 100% of the time, health-related unsecured debt consolidation involves using your home as collateral. So, before you make this decision, it is very important you carefully look at your situation and decide if this is a good option for you. You should understand that if you fail to make your payments, you are placing your home at risk. Are you really in a position where it is wise to trade unsecured financial debt for secured?

Another alternative, though far less desirable than the first two, is to seek bankruptcy relief. Because it will impact you for ten years, do this only as a final alternative. Before seriously considering bankruptcy as an option, you will need to seek the advice of an attorney. New laws that were passed in 2005 mean that not everyone qualifies for a Chapter 7 bankruptcy. If you do not qualify for a Chapter 7, it may be smart to try to settle your debt or consolidate rather than considering filing for Chapter 13.

by: Wendy Polisi

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