Medical debt is one of the main causes of bankruptcy in the world, and a huge threat to those in the US. When people are unable to afford medical debts they’ve accrued they tend to file for bankruptcy which in most cases is not the smartest thing to do. Lets reviews a few things that can be done to avoid bankruptcy from these huge medical debts.
One huge mistake people make with their medical debt is transferring it to their credit card. This shouldn’t even be considered as an option. Credit cards have much higher interest rates than the rates of medical agencies, and shifting your debt to your credit card decreases your chances of being approved for Medicaid since it’s based on your gross income and credit card debts are not taken into account.
With all debts, medical debts being no exception, you should actively work on clearing the debt and paying as much as possible. The harder you’re willing to work to pay your debt the more help you’ll receive from others, and you’ll be given more leeway from your lender if you show signs of progress.
It’s also a good idea to speak with your hospital and negotiate the rates of the debt. Negotiating your hospital bill should be done in a respectful, but firm manner. Make it clear that you’re having trouble paying for your debt, and that you’re looking for a solution that accommodates the needs of both parties. They want you to pay as much as you want to have your debts cleared.
Charity organizations are there to help people in desperate need. If you need that extra push to help you get out of the hole, don’t be afraid to contact a charity fund; that’s what they’re there for- to help you. Keep in mind factors such as your monthly income will help determine whether or not you qualify for a donation.
If you’ve tried everything and bankruptcy seems to be the only option contact your state’s health office and apply for Medicaid. Medicaid is a government funded program made to assist people in paying off their medical debts and avoiding bankruptcy. If approved your Medicaid plan could possibly pay the entire debt, or a good portion of it.