Medical debt is a crippling problem affecting thousands in the US. As it often comes with no warning, anyone can be subject to medical debt. Although it may takes years of hard work and dedication to pay off knowing all you can about it can help you learn how to handle it. Learning all you can about medical debt can help you manage it better and eventually pay it off. Here are five things to know about medical debt so you can make informed decisions about handling your own.
1. It’s easy to accrue medical debt
Unfortunately, it’s too easy for people to struggle with medical debt. Even those with health insurance may still find themselves on the hook for expensive copays or out-of-network charges, not to mention those without any form of health coverage. According to one study, over 40 percent of Americans struggle with paying their medical bills due to high costs or surprise fees after receiving care.
2. It affects your credit score
Poor credit can affect your ability to secure loans and other forms of financing—and unfortunately, unpaid medical bills can significantly impact your credit score if they go unpaid for long enough. If you’re struggling with medical debt and don’t pay it off within a few months, you must resolve the situation before it negatively impacts your credit score.
3. It can be managed
Thankfully, plenty of options are available for those who need assistance managing their medical debt load. For example, many hospitals offer financial assistance programs that allow patients to pay their bills in monthly installments or provide discounts for low-income patients who qualify for them; other organizations provide grants specifically for those dealing with overwhelming medical debts; and some states even offer programs that provide free or reduced-cost healthcare coverage for qualifying individuals and families facing financial hardship due to their health care costs.
4. You can negotiate with providers or collections agencies
Negotiating is one of the best ways to reduce your overall burden when it comes to tackling medical debts head-on; depending on the amount owed and the particular situation, providers may be willing to accept a lower payment than what was originally billed or agree upon a payment plan that works better for both parties involved than simply going into collections would entail. Additionally, collections agencies often have more wiggle room when it comes to negotiating settlements than the original provider does—so if you’re able to pay off some portion of what you owe right away in exchange for having the remainder forgiven or drastically reduced, this could be an option worth exploring as well.
5 . Declaring bankruptcy isn’t your only option
Bankruptcy is an extreme measure reserved primarily for those dealing with significant amounts of unsecured debts (such as credit card balances) rather than secured debts like mortgages and car loans —which means that unless you owe tens (or hundreds) thousands of dollars in unpaid medical bills, this probably isn’t something you need worry about just yet. Working out a repayment plan directly with creditors or through third-party resources such as non-profit organizations is usually sufficient to eliminate any existing debts.
Wrapping Up
As daunting as having large amounts of unpaid medical bills might seem, many options are available when tackling them head-on. With effective communication, diligent research, and a willingness to take action, anyone can manage their existing debts and prevent future ones from occurring —so if you’re currently facing a mountain of past-due bills, take heart: help is out there!