Most Mississippians know that large medical bills can cause serious financial problems. However, even small bills of less than $1,000 can be sent to collection agencies and end up as negative entries on credit reports. In fact, a recent study published in Health Affairs found that more than half of medical collections in any given year are for less than $600. More than 2 percent of adults also had medical collections of less than $200 on their credit reports in 2016.
Even though older people have more medical problems, young people are more affected by medical debt, according to the study. Men and women in their late 20s are three times as likely to have a medical bill sent to collections than people in their late 60s. One cause of this is Medicare, but research also shows that medical debt declines as adults get older before being eligible for Medicare.
Advisers recommend that people take action with their medical bills when they first arrive to avoid a negative impact on their credit reports. Billing departments are often willing to work with patients to get bills paid in full before they go to collections. They can provide flexible payment plans or connect patients with sources of discounts or charity.
Individuals facing medical debt can experience a lot of financial stress, but relief is available. A law firm that focuses on giving fresh starts to people with financial challenges related to medical care may be able to provide a variety of solutions. There are counseling services, repayment plans, debt consolidation and even loans. In some cases, it may be in the best interest of a client to take advantage of bankruptcy protection.
Baby boomers in Mississippi who always dreamed of early retirement might have to get used to the idea of late retirement or no retirement at all. At least that it is what statistics suggest. More people 55 and older are still working these days, and many who have retired from full time jobs are turning to freelance work to supplement their retirement income. As of 2017, 23 percent of the American workforce was aged 55 or older. The Bureau of Labor Statistics estimates that the figure will be a solid 25 percent by 2024.
The 2008 recession didn’t help baby boomers who were planning on a timely retirement, but poor planning could be another reason they are working longer. According to a survey by Bankrate, 58 percent of Americans don’t even know how much money they will need to retire. People are healthier and live longer than previous generations, but that means they need more money in retirement. To supplement their incomes, many people who have retired are doing freelance work. In 2016, more than 25 percent of the self-employed workforce was aged 55 or older, and more than half of those people were 65 or older.
Experts say that saving without knowing how much will really be needed for retirement is not a good idea. They advise workers to plan for retirement by doing the math first. To achieve their goals, some people may need to consider working part time or freelance to supplement their income once they’ve retired.
Older people who are overwhelmed by debt might wind up filing for bankruptcy; in fact, one in seven bankruptcy filers today is 65 or older. Though bankruptcy is the right solution for debt relief for many people, for others, alternative solutions might be better choices. Loan consolidation, an application to pay in installments or defensive litigation are some of the other options.People who are struggling with debt could consult an attorney to advise them on their options.
When Mississippi homeowners fail to make mortgage payments, they could face foreclosure. This means that the lender has decided to take possession of the home. However, there are ways that a person can end or delay the process. The first step in the process is to read any letters that the lender sends as they may offer information about avoiding a foreclosure.
Ideally, a homeowner facing foreclosure will talk to the lender as soon as possible. In many cases, the lender would rather work out an alternate payment plan as opposed to actually going through with a foreclosure. It may be possible to have the loan refinanced or have late payments rolled back into the loan. Depending on a person’s financial situation, it may be worth looking into bankruptcy to stop or delay the foreclosure process.
However, those who file for bankruptcy should be aware that it could significantly reduce their credit scores. The benefit to doing so is that a debtor will obtain an automatic stay against creditor collection actions. This means that the lender cannot follow through with a foreclosure while the bankruptcy case is open. If that isn’t an ideal option for a homeowner, a short sale may be a viable alternative to avoid the negative consequences of a foreclosure.
By filing for bankruptcy, an individual could receive a fresh financial start. He or she may also be able to postpone a foreclosure or the repossession of other property. In some cases, it might be possible to have debts fully discharged in a bankruptcy case. Those who own a home may be able to use an automatic stay as leverage to negotiate new loan terms with their lenders.
Healthcare costs are among the most significant financial concerns for senior citizens. When Mississippi seniors retire, they typically lose their employer-sponsored health insurance and depend on Medicare to cover healthcare costs. Although Medicare covers many of the medical expenses seniors face, it also includes deductibles for inpatient care and coinsurance for outpatient treatment. Fortunately, there are some things seniors can do to minimize their out-of-pocket costs and avoid excessive medical debt.
One way to avoid bankruptcy due to medical debt is to reduce expenses. Seniors can do this by keeping their employer health plan as long as possible to delay signing up for Medicare parts B and D. After they retire, seniors could reduce expenses by purchasing a Medicare gap policy. This kind of private insurance covers coinsurance and deductibles that the senior would be responsible for if they only had Medicare coverage.
Another option is to contribute money to a health savings account. The funds in these accounts are either pre-tax or tax-deductible and may be used after retirement to pay for health-related expenses. While seniors cannot add to the account after they enroll in Medicare, the funds they add prior to retirement will be available to them until they’re exhausted.
Seniors may use these strategies to avoid using credit cards to pay for medical expenses. Healthcare costs could lead to excessive debt and lower a senior’s credit score at a time when they have limited income to repay the lenders. Doctors and hospitals may allow seniors to pay their bills directly to the provider over time if they request this kind of arrangement. Seniors who have excessive medical debt may wish to work with an experienced bankruptcy attorney to get debt relief. This may help them lower, or even eliminate, their medical debts.
Up to 80 percent of Americans living in Mississippi and throughout the country have some form of debt. However, for some, that debt may become too large to manage in an effective manner. To start the process of lowering credit card and other balances, it is important to understand the different options available to achieve that goal. One such option is to apply for a personal loan.
Personal loans allow individuals to consolidate a variety of different debt balances into one payment. Typically, these loans come at a lower interest rate than credit card companies charge. This results in lower monthly payments and the ability for an individual to improve his or her credit score. Another option for those with credit card debt is to transfer balances to to a new credit card with a lower interest rate.
It is important to understand that zero percent interest offers only apply for a limited time. After about 12 to 14 months, the interest rate on a remaining balance could be up to 15 percent. Individuals who can’t or don’t want to make use of those options could choose to work with a debt relief company that will negotiate with lenders on a debtor’s behalf. Instead of sending payments directly to creditors, payments are made to the debt relief company instead.
There are many ways in which a person may be able to overcome financial challenges. In addition to debt consolidation or working with a debt relief company, it may be possible to file for bankruptcy. Depending on a person’s income and asset levels, debts can either be discharged immediately or discharged over a series of three or five years. An attorney may describe the pros and cons of using bankruptcy or other debt relief options.
