Don’t blame yourself or anybody else for the medical debts you’ve accumulated. It happens unexpectedly to millions of Americans, and for the most part cannot be avoided. However, you should be prepared for this common issue for when it does happen. Debt settlement is something which has recently come about as a method for resolving your debt issues.

It’s a method for reducing your debt through negotiation with the lender. Debt settlement is the right solution for people who are beginning to feel helpless with bills piling up, and are unable to meet the monthly minimum payments.

Debt settlement is much more efficient for you than going bankrupt, which will tarnish your record for 7 or more years. Creditors would prefer a settlement over bankruptcy because with a settlement they’ll at least be paid, where if you’re bankrupted they’ll loose all their money. Often times they’ll reduce your debts by as much as 50%.

Debt settlement when dealing with medical expenses is assuring both parties can come to an agreement, benefiting both. When negotiating with your lender make it clear that unless they approve your offer, you’ll be forced to file for bankruptcy. Filing bankruptcy means a 100% loss for the lender, which is something they want to avoid at all costs, so they’ll accept your offer more times than not. Be prepared for counter offers; it is a negotiation after all.

You can also try to negotiate with the hospital for a discount, since they usually wont want to be holding onto the debt for too long. To negotiate with the hospital simply call their billing department. If they refuse to give you a discount you can try discussing it with the doctor that treated you. Keep in mind, you should negotiate to reduce the pay offs, not the interest rates.

Debt settlement can lead to slight damage to your credit score, but far from what bankruptcy will do to it by leaps and bounds. Stay persistent in your requests and never be scared to negotiate your rates. Never agree to a settlement orally. Make sure every agreement is properly documented.

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