Tips and resources for help with medical bills - The Bills.com Blog

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Tips and resources for help with medical bills

Question: Dear Bill I have approx 13,000.00 in medical bills due to a hospital and physicians from back and knee surgery done in 2004 and 2005,I am on SSD and do not own a home to consolidateis there a logical way to meet these medical bill payments before they ruin my credit.

Answer: There are several possible solutions available to help improve your financial quandary, but the one that isbest for you depends on numerous factors. Below, I've described some of the most common debt relief options available to consumers to help you decide which option is the best for your individual circumstances.

If you want a free savings quote, you can apply with Bills.com's partners here: https://www.bills.com/debthelp/debt/

If you do not own a home or other property to offer as collateral for a secured debt consolidation loan, there are other options you should consider. You could look into an unsecured personal loan to consolidate your debts?check out the loans section of the Bills.com Savings Center for unsecured debt consolidation loans that may improve your situation. However, your ability to qualify for a personal loan that will actually save you money greatly depends on your credit score. If your credit history is less than perfect, you may have difficulty finding a lender willing to extend you credit, and if you do find a loan, you should expect to pay a premium in interest. A possible loan resource you may want to explore is www.Prosper.com, a site which puts private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank.

For more information about debt consolidation loans, I encourage you to visit the Debt

Consolidation Loan Resources page of Bills.com at http://www.bills.com/debt-consolidation-loan/ If you enter your contact information into the Bills.com Savings Center at the top of the page, we can have several pre-screened lenders contact you to discuss the options available to you.

If you find that a debt consolidation loan will not improve your financial situation, you may want to consider alternatives such as Consumer Credit Counseling and Debt Settlement. In a consumer credit counseling program, or CCCS, the credit counselor would arrange a lower interest on your credit cards. You would then make one monthly payment to the CCCS firm, which would distribute that money to your creditors. While CCCS firms can help some people reign in their debts, many find that these programs do not sufficiently lower their monthly payments to improve their overall financial outlook.

Another alternative is Debt Settlement. Companies that offer debt settlement services negotiate with your creditors to reduce the balances on your credit cards, not just the interest rates. Often, debt settlement firms are able to reduce consumers' debts to as little as 40% to 50% of the balance. These programs can also significantly reduce the amount you pay monthly toward your debts. However, the downside is that these programs have a negative impact on your credit score

while in the program and for a couple of years afterward. Many consumers find this credit impact well worth the benefit of settling with their creditors.

In your case, I think a debt settlement program may be particularly helpful, as these programs tend to lower monthly payments more than either debt consolidation or CCCS programs. If you are interested in debt settlement or CCCS, I encourage you to visit the Bills.com Debt Help Resources page at http://www.bills.com/debt-help/

Again, enter your contact information into the Bills.com Savings Center, and we will have pre-screened providers contact you to discuss the options available to you.

Finally, you could look into filing Chapter 7 bankruptcy. Since I am not a bankruptcy attorney, and I do not know all of the details of your financial situation, I cannot say for sure that you will be able to file bankruptcy, but given your relatively low income, I think it may be a viable option. If you would like to learn more about bankruptcy, you should visit the Bills.com Bankruptcy Information page at http://www.bills.com/bankruptcy/

I wish you the best of luck in finding a way to help improve your financial situation. I hope the information I have provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

User Comments

1. Posted by greg chitwood on Thursday 8th November 2007 14:51

I need a phone to call

2. Posted by Nithin on Thursday 8th November 2007 15:19

Here is the telephone number for a good company - Freedom Debt Relief, Toll Free 1-800-544-7211. They are BBB listed.

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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