subject: Medical Debt Relief – Tips And Advice For Debt Relief [print this page] Medical Debt Relief Tips And Advice For Debt Relief
When it comes to bankruptcy, medicaldebt is one of the leading causes, the only cause that is greater is people going bankrupt from loss of income after losing a job. Don't become a statistic and file for bankruptcy if you are plagued with medicaldebt! . Most people don't realize that there are multiple ways to solve medicaldebt other than bankruptcy. All options should be exhausted before filing for bankruptcy. Below is some advice which can be a starting point for resolving medical bills.
Do Not transfer medical debt to credit cards
Avoid moving any medical bills you have to a credit card. Doing a balance transfer to a credit card is not a wise decision because most likely the interest you will incur will significantly raise your total balance. Also, if you transfer your balance to a credit card, this usually lessens your chance of qualifying Medicaid if you choose to apply. Qualifying for Medicaid is mainly determined by total 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. Missed payments will just create additional penalties and interest toadd to the total amount owed
See if you can negotiate if you cannot pay
Can't pay the bills? Call the doctor's office or the hospital and ask for a reduction of bill or payment plan. Keep in mind that they would much rather settle for less than have you go bankrupt and not receive nothing. If you can't do this one your own, consider a medical bill mediation company or debt settlement company. 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.
Try to find charity organizations for assistance
By doing a simple search online, you can most likely find many nonprofit organizations, churches, or community organizations that might be willing to help you with your medical debt. Most organizations are more willing to help those that are extremely in need and have exhausted all other options.
See if you Qualify for 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. Research the state you are considered a resident of and see if Medicaid is available for you. Depending on your state, past medical bills may be covered or partially covered by your state Medicaid plan.
