Medical debt refers to the money owed for such things as a medical procedure or prescription medication. Many Americans, especially the uninsured, have medical debt resulting from an unexpected illness or injury.
Here are some tips for dealing with medical debt in the best possible way.
You can always attempt to negotiate the sticker price of medical bills. If you do not have medical insurance, ask about any discounts your healthcare facility provides. Many hospitals offer payment plans to those having trouble paying. Regardless of your insurance status, you can ask for an itemized bill to see exactly what the facility is charging you for.
There are places that can help you with paying off medical bills. Ask your provider or hospital staff if they know of any organizations in your local area that provide this service. If that does not result in any leads, you can search online for medical financial assistance.
As with any debt, you want to avoid letting medical bills pile up to the point where they become unmanageable. While you do not want to make rash decisions regarding payment, you do want to be aware of any interest that may be accruing on those bills. Attempt to pay off what you can, even if it is only a small amount.
The more you know about medical debt, the better able you are to potentially negotiate a lower payment amount, achieve better terms of payment, and avoid going into bankruptcy.
Long gone are the days when a single-income family could thrive in middle America.
Many people struggle to make ends meet when life is normal, and an event such as a job loss, divorce or medical emergency can derail a family’s financial future. The top three money sinks are also the most essential budget items.
For most Americans, housing is the most significant line item of their budgets. Many people hoping to buy their first or second home are struggling to qualify for mortgage loans as the U.S. housing prices continue to climb. Additionally, renters are having trouble keeping up with their month-to-month payments as rent increases across the country. A few key reasons for the current housing crisis include:
Single-parent households or dual-income families rely on childcare providers to take care of young children during shifts. Reliable child care is expensive, and according to a recent survey, parents spend ten percent or more of their annual income on daycare.
Even with employer-subsidized insurance, a family of four may pay as much as ten percent of their monthly income on health coverage. Additionally, nearly one-fourth of Americans carry medical debt that they are struggling to pay off.
Bankruptcy serves as a lifeline for those circling the drain. The stress that comes with money troubles can destroy a family, but having the courage to hit the reset button provides much-needed relief and the space to start again.
You may view the process of filing bankruptcy in a negative light. Filing for bankruptcy is a serious undertaking.
Bankruptcy also provides many benefits to families not available outside of the bankruptcy process.
If you are behind on your mortgage payments, you know how hard it is to catch up with the arrears. Lenders add late fees and penalties to increase the amount you owe. An aggressive mortgage holder can start foreclosure proceedings against you to take possession of your property. If the lender forecloses on your home, you will lose the property.
By filing for bankruptcy, you can stop any foreclosure proceedings. As part of your bankruptcy, you can negotiate a way to pay back any arrearage and stop the running on penalties and interest.
If you receive regular calls from creditors trying to collect bills you cannot pay, a bankruptcy filing will stop creditors from calling. Bankruptcy also stops any litigation proceedings creditors may have against you. The only recourse creditors will have is through the bankruptcy court.
If you qualify to file a Chapter 7 bankruptcy, you can probably eliminate most of your unsecured debt, including credit cards and medical expenses. If you file Chapter 13, you will likely pay a small percentage of the amounts owed to unsecured creditors through one monthly plan payment.
Bankruptcy can provide significant relief for your family if you have overwhelming debts that you cannot pay. After filing, you can start over and change your financial future.
Bankruptcy can be a burden in many ways. Even after you pay off your debt and get on solid footing, you still have to worry about creditors reporting your bankruptcy information.
Negative information in your credit reports can affect your financial options in the future, so you should be mindful of the ramifications. At the same, you should not feel as if your bankruptcy will leave a permanent mark.
For up to a decade, a credit bureau can keep your bankruptcy on your report. Your creditors can also keep negative information such as judgments and lawsuits for up to seven years in most cases. On top of this, if you do not pay some of your tax liens, this information can stay on your record for 15 years. You should keep all of this in mind if a company offers to remove negative information earlier than the standard timeframe.
Errors can easily happen in your credit reports and you have the right to bring them into question. For one, the Consumer Financial Protection Bureau is always there if you have a complaint. Also, if you have trouble getting credit with a company because of a report, the Fair Credit Reporting Act entitles you to a free copy of the report (as long as your request is within 60 days). The company that denies you must also provide you with the phone number, name and address of the credit reporting agency.
While a bankruptcy discharge can help you, you should prepare yourself for what may come after. Understanding how credit reports work can help you repair your finances and move on.
If you have excessive credit card debt, you are far from alone. In fact, in 2020, the average American owed more than $5,000 to credit card companies. This makes sense, as many individuals have little choice but to reach for credit cards to cover both ordinary and emergency expenses.
Having credit cards is a good way to build a good credit score. If you accumulate too much debt, however, your credit cards may work against you. Here are three ways to take control of the plastic in your wallet or purse.
Because many credit cards offer cashback and other types of rewards, it can be tempting to pay with your card. Still, you should not let your credit cards lure you into developing poor spending habits. If you can stay within your means and pay off your credit card balances each month, you are likely to realize some immediate financial benefits.
Credit cards often come with massive interest rates. If you are not able to pay off your total balance at the end of a billing cycle, you are likely to pay more for goods and services than they are worth. Therefore, if you have an unexpected expense, it may be wise to look for other financing options. For example, your bank may offer you a loan at a lower interest rate than your credit card.
If your outstanding debt makes you uncomfortable or nervous, you may not open your credit card statements. Still, to regain control over your finances, you need to know how much debt you have, how much credit you have left and how much interest you are paying.
Ultimately, if opening your credit card statements causes you to panic, you may want to explore bankruptcy or other debt-relief options.
