April 13th, 2019 | Updated on June 30th, 2022
Last year, Americans borrowed $88 billion to fund medical bills, according to Gallup. And, it wasn’t just small amounts that the nation borrowed either. An estimated 2.7 million people borrowed a sum of $10,000 or more. Of course, medical care is crucial and can prevent small health complaints from becoming big problems.
But, as a result of this essential care and borrowing, the Common Wealth Fund states that 72 million are currently having problems paying back their medical debt. But, you’ll be pleased to know that there are ways to get on top of your medical debt and get your finances back on track.
1. Borrow Funds
Borrowing cash to cover the cost of your bills is one way to ensure your medical debt is paid off. While borrowing more funds might sound counterproductive, it can be beneficial as you’ll have more time to pay back a loan and will be able to repay it in installments rather than in one lump sum.
However, with the average hospital stay in the U.S coming to approximately $10,000, 16% of Americans have a mark on their credit report for an unpaid medical bill and think that they won’t qualify for a loan.
The good news is that it is possible to borrow funds even when you don’t have a glowing credit status. So, if you’re in need of some financial help, be sure to consider all your borrowing options.
2. Negotiate Your Bill
Negotiation is an effective tool when it comes to cutting the cost of an expensive medical bill. If you simply can’t afford to pay your bill, get in touch with the organization’s finance department, explain your situation and tell them how much you can afford to shell out.
The Atlantic highlights the case of a $1,807 bill which was reduced to $1,084, following negotiations. Meanwhile, Maureen Lamb of Medical Bill Support, LLC says that if you agree to pay your bill in full within a specified time frame, the company will knock up to 50% off your bill.
Although, if you go with this option, ensure you can access the funds to cover it.
3. Arrange A Payment Plan
26% of Americans with debt have no plan about how they’ll pay it back. However, most companies will produce a payment plan when requested to do so, and medical companies are no different.
Ultimately, these organizations want to receive their cash, and they’d much rather give you months to pay back what you owe rather than see you declare yourself bankrupt or have to take you to court.
There’s no need to let medical debt tie you down as there are steps you can take to get on top of your bills. Plus, with a little bit of enthusiasm, you can reduce the total amount that you owe altogether.
