Medical Debt

When faced with high medical debt due to chronic or catastrophic illness, most American consumers panic. They dip into 401K funds or even sell property in order to pay them down. Health insurance is expensive, and many are underinsured or don't even have health insurance. Becoming ill today can easily mean a whole lifestyle is lost, and it can mean never recovering financially. While the government is trying to work on the situation, many consumers are being caught in the proverbial mire of medical debt.

There are several kinds of medical aid, which work to help the consumer, but they also are good only for those whose incomes fall beneath a certain level. They are worth investigating if there has been job loss or other financial disasters. For most, they don't apply and they are left with finding their own solutions. Many hospitals, in particular, will give people a break, but only after the consumer has exhausted any possible means of repayment.

Many consumers can also help hone down their medical debt by taking the time to closely examine their bills. Many mistakes are made these days by both hospitals and labs. It requires a good deal of diligence, keeping records and making phone calls, but can often drastically reduce how much is owed too. It is a situation of a patient having to be their own watch dog against mistakes and intentional double billing. It is an unfortunate state.

Medical debt is a national epidemic, and more than 50% of all personal bankruptcies filed are due to it, and the unfortunate part is that many of these bankruptcies are for people 65 and older. They are losing their retirement plans, and even their homes in some states. The rules of property are different in each of the 50 states, and the consumer should become knowledgeable in what the law is for where they live.

The consumer should also understand that medical debt is unsecured debt, and it can be negotiated to lower amounts. Explaining and proving to hospitals and labs that there is simply no money with which to pay can only be taken so far by the average person, and many opt to sign up for services by debt resolution or credit counseling companies. These can certainly be a benefit in working to find a solution that works for both the consumer and the creditor. While neither doctors or hospitals will give treatment away, they will listen.

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