Information About Options with Medical Debt - The Bills.com Blog
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Information About Options with Medical Debt
Question: My boyfriend works fulltime, can not get insurance thru work or get any kind of help to get insurance. In December was diagnosed with cancer. He has since seen many doctors, been treated with radiation. Cancer is gone. He applied for Medicaid and was denied. Now all bills are being sent to collection agencys. We couldn't keep up with them if we tried. He is already getting his wagesgarnished for a proir medical bill from 6 years ago. We just really can't afford it. He is to see 2 of his doctors every 2 months, Just feels like you choose life or death. Where does he go from here? Does he have any options?
Answer: I am sorry to hear about your situation. Medical debt can accumulate quickly and become overwhelming real fast. 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: Debt Relief Savings Quote
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
target="_blank">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. 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.
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 situation, 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.
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/blog
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1. Posted by gemma stapert on Tuesday 13th May 2008 19:32
i am in debt alot of medical bills and credit cards i did not know i was to become disabled and my credit went down the tubes now i have attorneys suing me wanting to take me to court and come to my home to see what assests i have. i am on food stamps etc. the one lawyer wanted me to pay $100.00 a mo. thats impossable what do i do?
2. Posted by Bill on Wednesday 14th May 2008 10:29
You will need to file for bankruptcy protection, that is the only recourse I can think of. For more information please visit http://www.bills.com/bankruptcy