The expenditure of yearly healthcare is at $3.8 trillion. The Federal Reserve has said that half of all the collection on credit reports is a result from unpaid medical bills. Paying bills is something many fear doing, and when the cost is high, then it all seems frightening. One thing you must ensure is you do not ruin your credit score due to unpaid medical bills. There are many methods that can help you to pay down medical bills, all of which are listed below.
One to Five Methods to Help Pay down Medical Bills
- Crowd Funding
- Peer-to-peer lending
- Charity programs from hospital
- Negotiate with the medical office
- Negotiate with your insurance company
Various crowd funding websites can help individuals pay for medical expenses. Such sites are becoming extremely popular as many are on the search on ways to help pay down medical bills. People can ask other individuals to help them pay down medical bills, which makes this way somewhat similar to raising money for a cause or action. Websites such as giveforward.com are of much assistance to help individuals raise money in order to pay down medical bills.
If a personal loan fails, you need to look to peer-to-peer lender, which will directly give you money. A good place to start is prosper.com. It is important that your credit score is 640 or above, as that is when the majority lenders will agree to give you money. The lender also determines the interest rate that you pay on the loan. If you have a credit history that is poor, then you should not be surprised if you need to pay a high interest. If this is the case for you, then borrowing from a personal lender should be your last resort.
Another way to help you pay down medical bills is to take the time to check for charity programs from your hospital. The majority of hospitals have charity programs in place, which deliver financial assistance to individuals who are looking to pay down medical bills. In order to find this out, you can check the official website of your hospital or ask the staff.
Another way that can help to pay down medical bills is to negotiate with the medical office. For this, you need to get in touch with the medical office or hospital and tell them how much you can pay back monthly and that you would like to change your current monthly bill. As soon as the staff can see that you are making a serious effort, they will definitely be more compassionate towards you.
If you are the kind of person who pays insurance bills on time, there is no reason why your insurance company cannot lower your bill. You need to be sure to ask, as this may be another way to help pay down your medical bills.
Six to Ten Methods to Help Pay Down Medical Bills
- Refinance your mortgage
- Tap into your retirement plan
- Find new work
- No-interest credit card
- Cut down non-essentials
Another thing you may want to consider is refinancing your mortgage. This will help reduce your monthly bill, especially if your medical bills are really too much. Before you think to refinance your home, it is important you see how much equity you have in your home. The advantage of this method is that it significantly reduces your overall monthly bills. However, the disadvantage is that it will take longer to pay off your home. If you are considering this option, it is important you weigh both these facts before making a decision.
If you are finding it extremely difficult to manage your medical bills, another option is to tap into your retirement plan. Depending on your retirement plan, it may be that you are subject to pay fines or taxes by making an early withdrawal. In order to look into your options and to see how much it will cost you, it is important you speak to your tax advisor.
Alternatively, you may search for new work. A job that pays higher is what you need to consider. On the other hand, you may still keep your current job and find a second one. It may not be easy when searching, but anything temporary will definitely help you tackle those medical bills. You can always start from tutoring, babysitting, organizing, or cooking. If your current job pays overtime, then you may also want to negotiate this option with your employer.
Another thing you can do in order to help to pay down medical bills is cut out the bills that are not essential to your life. This may include the internet, cable, or anything else. If you do consider making some serious cuts, it will definitely help you to manage your money and of course to pay off those medical bills.
If your credit rating is good, then you should definitely consider opening a new line of credit. Someone who has a bad credit rating may find this difficult, but if your credit score is good, then there is no reason why you should not proceed. If a credit card has no interest for 12-24 months, you can easily pay off your medical bills. After this period ends, it is important you have a second plan that can help pay back your debt.