Healthcare costs are on the rise, and with average daily hospital expenses being around $3,949 per person, medical bills can add up quickly. Since medical bills are considered unsecured debt and do not require collateral, people can easily find debt relief options. While medical bills hardly ever offer financial aid, people feeling overwhelmed can get a personal loan, consolidate, or settle the debt to help.
Debt Relief For Medical Bills
Personal Loan or Consolidation Services
The most common ways to help pay for medical bills are with debt consolidation, and an unsecured personal loan. These processes involve a bank or another lender looking into the client's financial situation, employment, credit rating, etc. People often look toward debt relief options to get lower interest rates on their medical bill payments. Personal loans can act as a way to prevent medical bills from going unpaid and getting sent to collections.
A debt consolidation program can also help with medical debt. With the client's approval, the company will contact the hospital, doctor, and healthcare providers to negotiate a lower interest rate and monthly payment. A consolidation program can also help people organize and manage their bill payments, all with a lower interest rate.
Medical debt settlement is for people dealing with unpaid medical bills. Companies can help customers by negotiating paperwork, and settling, resolving, or figuring out an alternative payment plan for the remaining medical debt. Debt settlement can act as an alternative to bankruptcy.
Unpaid medical bills are sent to collections -- a process that can significantly lower one's credit score. Because of this, it is important to get a handle on medical bills before they have to go to collections.
Medical bills are considered unsecured debt, which is why they are more likely to be accepted into debt relief programs. Other bills including: credit card debt, personal loan debt, utility bills and apartment costs, and business loan debt are all considered unsecured debt. These kinds of debt do not require collateral and are thus typically accepted into debt consolidation and settlement programs.
It is harder to find debt relief options for secured debts, because they require collateral. A lot of debt settlement and consolidation programs do not work with secured debt, like mortgages or auto loans.
People having trouble paying their medical bills should seek help before it is too late. Debt relief programs can help people achieve lower and more affordable interest rates and monthly payments, and prevent medical bills from having to enter collections all together.