Perhaps the only thing worse than getting sick and needing medical attention is the bills that come afterward. In fact, 20 percent of working-age adults in the United States report having trouble paying their medical debt. That’s where a personal loan can help.
Why Not Paying Medical Debt Can Lead to Serious Issues
Unlike a car, if you default on your medical debt, they can’t come and repossess the medical services you received. This is a good thing, for the most part, but it is also one of the reasons that this type of debt makes up the largest portion of consumer debt in collections.
Because medical debt is so difficult to collect, hospitals and other providers are eager to sell this debt to debt collectors. In fact, typically, this category of debt is sold for less than one penny for each dollar.
That means a debt collector can buy a billion dollars of debt for only $14.5 million dollars.
Once your debt is turned over to a debt collector, you can expect to receive harassing phone calls on a regular basis. In a worse case scenario, you can be taken to court and they could receive a judgment against you.
Another reason it is unwise to let medical debt go unpaid is that it will hurt your credit score. Once the debt has been handed over to a debt collector, the lack of payment will be reported to the three major credit reporting agencies.
If this happens, you should expect to see a dip in your overall credit score. If there is a judgment filed against you, your credit score will take a major hit that will take a very long time to recover from.
How to Deal with Your Medical Debt Today
You do have options to deal with this debt, so you don’t end up in a worse situation. While it can work against you that medical providers are eager to offload this debt, it can also work to your advantage.
Because they know it is so difficult to collect, they are willing to negotiate with you to reduce the overall amount that you owe. This can provide you with great savings. Of course, before they will lower your debt, they will expect something in return, and this is where using personal loans to pay off medical debt comes into play.
Chances are if you negotiate a reduction in your medical bills, the providers will expect payment immediately or very soon for all or most of the debt. If you don’t have the funds available, you should consider using a personal loan.
With a personal loan you can wipe out all of this debt at once, and then there will be no harassing phone calls from bill collectors or threats of judgments.
Very often, if you’ve had any kind of treatment in a hospital, you will receive bills from several different medical providers, by using a personal loan to pay them off, you will have only one payment each month instead of three or four or more.
This payment will normally be less than trying to pay multiple bills at the same time.
Not to mention, if you do negotiate a reduction in your bills, your overall debt could be reduced by as much as half of what you originally owned, and then by paying off the entire new balance with a personal loan, you will find that your monthly payment is affordable.
Don’t let medical debt stress you out. Talk to your medical provider today and offer to settle your debt for a reduced amount that you pay off with a personal loan.You’ll feel better and be able to live your life without the dread of debts hanging over your head.
This information was brought to you by BetterLoanChoice
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