Why is it Important to Pay Medical Bills, and what to do if you don't Have Money for it?
The disease is something that happens to all of us. Colds, chronic diseases, a broken arm or leg - unfortunately, no single person can boast of perfect health and never visits a doctor. And besides the fact that going to the hospital is scary for many of us, there is something that scares every adult much more than injections. These are medical bills. Perhaps people with health insurance are a little more relaxed about medical bills, but even insurance doesn't cover everything.
What are Medical Bills?
Medical bills differ from utility bills, for example, only where they are received. Otherwise, the medical bill is what you pay for a visit to the doctor and the prescribed manipulations. Like any other bill, the medical bill must be paid off to avoid problems.
However, paying off your medical bill can sometimes be difficult. Often the prices for medical services are really very high compared to the average income of an American. For this reason, 137 million people across the country cannot pay their medical bills on time. However, refusing to pay such bills can create serious problems.
What Happens if You Don't Pay Medical Bills?
Of course, each medical institution treats its debtors differently. In addition, the amount you owe will also carry weight. However, if you do not pay medical bills, the reaction of your creditor, that is, the medical institution, will be approximately the same.
- Interest and late fees will be added to the unpaid debt.
- If you delay the payment by 90 days or more, the medical institution will pass your data on to the debt collection agency.
- In addition to constant psychological pressure, the collection agency will report the medical debt to credit bureaus. Then your credit score will drop significantly, leading to problems with obtaining loans in the future.
- If you refuse to pay a collection agency, they will sue you. This will allow collectors to apply liens, wage garnishments, and bank account charges.
How to Pay Medical Bills if You Have No Money?
So, you are healthy, but you got a headache from which no pills can help, and it is called a medical bill. Unfortunately, not everyone has the savings to cover some of the hospital services. But you need to pay, and you are forced to look for options.
Borrow From Friends
This may be the first thing we all come to. Borrowing from friends or loved ones seems like a smart decision. They won't charge you any origination fees and will most likely get by even without interest rates. But your loved ones may simply have no savings. Or not have free money that you can just take and borrow. In addition, when money enters a relationship, especially borrowed money, it can ruin everything.
Take a Loan
Loans have long been a part of our lives. We take a TV on credit; we take a loan for a wedding. Medical bills are a really good reason to apply for a loan. Lenders even have a term - a medical loan.
However, you are unlikely to find a separate line for "medical credit." You will still apply for a personal loan if your medical bill exceeds $1,000. Rates and terms will depend on the amount of the loan, its term, and, of course, your credit history.
However, people with bad credit have no need not worry. There are medical loans for those whose credit history is far from excellent.
If the amount of the medical bill is less than $1,000, you can consider a payday loan. You will pay off your debts faster. But you should ensure that you can then make a payment on the loan; otherwise, you cannot avoid a debt hole.
What Else Can You Do to Pay Medical Bills?
There are a few more things that will help. If you do not pay medical bills, then at least reduce them. Or lessen the damage that unpaid medical bills can do to you.
- Check medical bills for errors. Doctors are human too, and they can make mistakes too.
- Don't let collectors get to you. Contact the billing department in the big city and explain your financial situation. Keep negotiating, and quite possibly, this will help.
- Declare bankruptcy. This is the last thing on your list, but it is still an option, despite the complexity of the procedure and the significant damage to your credit score.