Medical Debt Alternatives

  
     
  By: Wendy Polisi  
 

Experiencing serious medical issues is bad enough without also understanding the financial stress that it is causing you. The unfortunate truth is that the majority of all bankruptcies which are filed this year may be the direct consequence of excessive health bills. You have three main alternatives if you are currently experiencing health-related bills that you cannot deal with. You may negotiate your debt, seek out a health debt consolidation loan or you can file for bankruptcy. Let’s look at your 3 alternatives so that you simply can best determine what the right option for you is.


One option for managing your medical bills is financial debt settlement. This involves you working with the creditor to find a mutually agreeable amount that they'll accept to consider the account satisfied. The amount which you can save will vary depending on your situation, but typically will be 40% to 60% of what you are obligated to repay. There are unsecured debt negotiation firms that specialized on working with individuals with excessive debts, but you may want to consider handling negotiations on your own. Numerous financial authorities have called the complete debts settlement industry a sham and at the minimum working with a company can be risky thanks to the fact that they are generally unregulated. This is because most firms charge you up to 20% of the total amount that you owe and they keep this money regardless of whether they reach an arrangement for you.

Medical financial debt consolidation is another option that can help you reduce your payments and bring your required monthly payments to a manageable level. One thing to realize here is that almost 100% of the time, this type of debts consolidation requires that you use your home as collateral. So, before you make this decision, it is very important you carefully look at your situation and decide if this is a good option for you. You should understand that if you fail to make your payments, you are placing your home at risk. Is it wise for you to turn unsecured personal debt into secured?

The last alternative is to file for health-related bankruptcy. Since this is going to impact you for a full ten years, this should be considered only as a last alternative. Before seriously considering bankruptcy as an option, you will need to seek the advice of an attorney. New laws that were passed in 2005 mean that not everyone qualifies for a Chapter 7 bankruptcy. If you do not qualify, you may be better off trying to negotiate your debt or to try to consolidate.
  
  Article Source: http://yourfinance.co.za   
     
 
About The Author
To learn more about medical debt consolidation loans or about filing bankruptcy due to medical bills please visit us at CreditRepairCollege.com.
 		  
     
 
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