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Reasons to Consolidate Medical Bills

Reasons to Consolidate Medical Bills
Mark Cappel
UpdatedDec 1, 2010
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    2 min read

Consolidating your medical bills can make paying off these unexpected expenses easier.

Medical expenses can come out of nowhere and compromise your entire budget. Because medical bills are due at time of service, your medical provider is not required to negotiate with you if you cannot make the full payment up front. When paying up front is not an option, it can be even more difficult to decide how to handle these new bills in addition to your regular monthly expenses. Some people are able to come to an agreement with their medical providers, which allows them to pay their bills with a monthly payment that satisfies their providers. Other times providers demand payment in full and if you can’t pay will send creditors after you or begin to take legal action against you. When faced with the added expense of going to court you might consider getting a consolidation loan to pay off your medical debt.

Why Consolidate My Medical Bills

Consolidating your medical bills can make paying off these unexpected expenses easier:

  • Consolidate your medical debt if you can get a lower interest rate over a good term that will allow you to pay off your debt quickly. Make sure that you can make the payments each month, so that you keep yourself out of financial hot water.
  • Because unpaid medical debt can negatively affect your credit, you can consolidate to protect your credit score. Again, make sure that you can make your monthly payment on your consolidation loan or your credit will suffer more.
Quick Tip

The Debt Coach offers non-nonsense information about your debt relief options, and will give you the pros, cons, and costs for each.

Why Not Consolidate My Medical Bills

Using a loan to consolidate your medical debt might not be the way to go. Read more to see if your situation does not merit consolidation:

  • You can erase unsecured medical debt in bankruptcy, but when you consolidate with a secured loan, you could lose your home if you cannot keep up with the payments.
  • You may pay more in interest if you consolidate than you would if you negotiated with the hospital. Be sure to explore all of your options before you consolidate.

Other options for paying off your medical bills include Consumer Credit Counseling and Debt Settlement. Consumer Credit Counseling can help you get a lower interest rate, but your monthly payment will usually remain the same. Debt Settlement works to reduce your balance and can help you pay your debt off sooner, but it can also negatively impact your credit. When examining your options, be sure to ask about all fees and charges attached to the services you are requesting. Check the companies that you’re shopping online to see how other customers feel about their service. Because you’re already in a tight spot, find the option that will improve your financial situation instead of making it worse.