Medical Debt - Top Three Options to Reduce Medical Debt

Medical debt can easily get out of control. Without health insurance, the rapid accumulation of debt can be overwhelming. And, even with insurance, there are so many companies slashing coverage items nowadays that a severe or prolonged illness can rack up steep medical debts.

If you find yourself in such a crisis, there are several ways that you can reduce and, in some cases, even eliminate medical debt without filing for bankruptcy.

Apply for Medical Financial Aid

Most hospitals provide charitable or financial aid to those who qualify. Many clinics and doctor’s offices will also work with those who can prove they are under unusual financial duress due to escalating medical bills or decreasing incomes. However, you should file for assistance as soon as possible since most establishments have limits on aid application (usually 6 to 12 months).

Although there is quite a bit of paperwork to fill out and information to provide, thousands of dollars can be wiped off your debt.

Consolidate Debt

The key to debt consolidation is to reduce the amount owed beforehand. Review all medical charges to determine their validity. Also, pay off as many of the smaller bills as possible. The more you reduce your debts, the easier it will be to manage an overall consolidation payment.

Once you have your debt reduced as much as possible, contact numerous banks and inquire about a consolidation loan until you find one that will provide a loan and at the most advantageous provisions to you.

Debt Negotiation

Another way to reduce your medical debt is to negotiate directly with medical care providers. Many people aren’t aware that large portions of medical bills can be reduced or eliminated through direct negotiations. Others don’t have the time, knowledge, or patience to deal with the high pressure tactics of such medical negotiations.