Consolidation of Medical Debts: Significant Things to Understand

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Almost each and every person is aware of the fact that the medical expenses have started soaring to a great extent. One emergency and you might have to spend a lot of money in order to ensure that you are completely healthy. This is one of the most important reasons as to why many people have a huge amount of medical debt. This happens because the medical bills are responsible for putting a person in financial emergencies. This is going to be more difficult when a person has to tackle the bills that are coming from a number of hospitals as well as doctors. It is true that a number of avenues are available for consolidating medical bills, but unfortunately, bankruptcy is something that most people consider to be the best option.

Medical debt is one of the leading causes of bankruptcy

According to a recent study conducted by Elizabeth Warren, 62% of the personal bankruptcies were as a result of medical debts. Even a small health issue can lead to huge medical bills. You also need to understand that if you are not able to clear your medical bills and they become debt, it is obvious that they are going to appear on the credit report. Also, they are going to impact the credit score in a negative manner.

Review your medical invoices in order to ensure accuracy

People tend to fall behind the medical bills when they stop recognizing the gaps that exist between the insurance coverage or when they do not check the invoices in order to see if everything is accurate. There is no denying the fact that each and every hospital is notorious and they are going to swindle their patients for medications and services, irrespective of the financial condition that the patient is going through. However, all these mistakes are not corrected on caught by the patients or the family members. This is why you should definitely check your bills before you start making your payments. If you see that there is any mistake, ensure that you are reporting it to the hospital authorities immediately and do not rest until and unless it has been corrected.

No interests in medical debts

The hospitals and offices of the doctors do not charge any rate of interest on the medical bills. They need to work on payment plans, which are going to fit the budget that you have. This is one of the best ways of dealing with your medical debt.

Irrespective of this, you are going to get extremely stressed and worried when your medical bills start overwhelming you. Given below is a list of the solutions that you can consider in order to take care of your medical debts.

Negotiate the medical debt

The first significant option, which you can definitely consider is negotiating directly with the hospital or your doctor. Doctors, as well as hospitals, are responsible for inflating the costs of the services and the medical procedures dramatically. Talk to them and inform them the amount that you can pay at the end of each month and ensure that you are working out a payment plan, which is realistic.

You can also offer to pay a certain portion of the amount that has been mentioned in the bill as advance and take time to settle the rest of the amount. Ensure that you are getting agreements in writing before you pay a lump sum. If you settle the medical debt for less money than what you owe, it can definitely have a bad impact on the credit score.

You can also take advice from the professionals who are known to specialize in negotiating medical debt. They are going to help you to look for all the errors that are present in the medical bills and assist you in negotiating additional discounts on behalf of you. You can definitely do this by yourself, but it is one of the best ideas to take the help of the professionals. You also need to know that when you hire a professional, they are going to charge a certain amount of money from you.

Asking your loved ones to help you

It never hurts to ask people for financial help. You never know who is going to end up helping you and ensure that you get rid of the medical debts that have been troubling you. To know more, you can visit the reputed website,

Consolidate the medical bills

Medical debt consolidation is going to be beneficial when you have paid your medical bills with the help of your credit card. In such a situation, it becomes almost identical to consolidating credit card debts.

You can get the home equity loans or personal loan at a proper interest rate in order to cover the total amount, which you owe to the doctor’s office or the hospital. The manner in which it works is that you are taking out one loan and using this money for clearing all the medical debts that you have. There is going to be a single creditor and you have to worry about only one payment at the end of every month.

Personal loans are basically the unsecured loans, which you are going to get from traditional banks. Since there is no collateral, you need to understand that the bank is going to charge a high rate of interest. On the other hand, a home equity loan is backed by your house. You are basically putting your house at risk but the interest rate is going to be low. On the basis of the situation that you think is more appropriate, you can opt to consolidate the medical debts.

The benefits associated

  • A single monthly payment, combining your medical debts with the credit card debts, which is going to help you save money and remain, organized.
  • You can clear your debt consistently.
  • Your credit score is going to improve with time.


Medical debts are quite normal these days. However, it is your responsibility to choose the best option so that you can clear the debts as fast as possible.