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Medical debt and medical bills advice - The Bills.com Blog
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Medical debt and medical bills advice
Monday, Oct 29, 2007
Question: I recently had a baby and we have been unable to pay the medical bills due to financial difficulty and now we are able to pay some money but I just got a letter from a lawyer, so does that mean that i now have to pay the lawyer? Will they accept payment arrangements or are they going to ask for the full amount? I can pay now like 50 to maybe 100 dollars a month and then when we get our tax return we should be able to pay them off almost completely. What do I do?
Answer: Medical bills and related medical debts can be a major concern for many American consumers.In most cases, incurring medical debts is a necessity, whether or not you are able to pay for the services, as being treated could mean the difference between life and death. Unfortunately, lack of insurance coupled with the high price of medical care can leave consumers forced to seek treatment saddled with hundreds of thousands of dollars of health care bills, despite the fact that they have no means to pay the debts.
As I am not an attorney, so I cannot provide you with legal advice. You may want to consult with an attorney in your area regarding the notice that you received. I would recommend that you attempt to resolve this debt with the creditor or the creditor's attorney before they take any further collection action. If you obtain a fairly sizable portion of the balance, the creditor may be willing to settle the debt. For example, if you can offer 60% of the outstanding balance in a lump sum payment, the creditor may be willing to forgive the remaining balance and dismiss the court case. Contact the creditor's attorney to discuss settlement of the debt.
If you cannot access a lump sum to settle the debt, the creditor may be willing to accept monthly payments to stop
further collection activity, but will probably not dismiss the case against you. The creditor will want to obtain a judgment against you just in case you do not make your scheduled monthly payments. Again, contact the creditor's attorney to discuss possible repayment plans.
Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, click here: Debt Help
One option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. One benefit of CCCS is that it should not seriously damage your credit score. However, it may have a negative impact on your ability to obtain a loan, as many lenders view enrollment in a CCCS program the same as filing Chapter 13 bankruptcy. There are a few additional drawbacks to CCCS: first, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan.
You may also want to
Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, click here: Debt Help
One option to consider is a Consumer Credit Counseling Service, or CCCS. CCCS companies offer numerous services, such as financial counseling and budget planning, as well as Debt Management Plans (DMPs). In a DMP, the CCCS would arrange a new payment amount with each of your creditors, usually based on a reduced interest rate. You would then make a single monthly payment to the CCCS which would distribute the funds to your creditors, based on the new payment amounts. One benefit of CCCS is that it should not seriously damage your credit score. However, it may have a negative impact on your ability to obtain a loan, as many lenders view enrollment in a CCCS program the same as filing Chapter 13 bankruptcy. There are a few additional drawbacks to CCCS: first, depending on your creditors, it may not be able to reduce your monthly payments enough to improve your financial situation. Second, the average DMP takes around five years to pay off your debts, so you must be willing and able to commit to a long-term repayment plan.
You may also want to
consider the services offered by debt settlement firms. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people who wish to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payments toward your debts. Many consumers prefer debt settlement programs to CCCS, as debt settlement programs tend to be significantly shorter than CCCS plans, and the monthly payments in debt settlement are usually lower. There is one major drawback to debt settlement programs, though- they will significantly damage your credit while in the program and for at least a year or two afterward. However, since you mention that you have not yet established a solid credit history, you may want to go ahead and resolve your outstanding debts now, hopefully allowing you to rebuild your credit once you have resolved your debts.
You will need to carefully consider the costs and repercussions of the various options to decide which is the best choice for you. Depending on your income and amount of debt, one of the options I have described above may be able to help you. I encourage you to explore the Bills.com website, to read more about these and other options available to you.
Best,
Bill
www.bills.com
You will need to carefully consider the costs and repercussions of the various options to decide which is the best choice for you. Depending on your income and amount of debt, one of the options I have described above may be able to help you. I encourage you to explore the Bills.com website, to read more about these and other options available to you.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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