In America, medical expenses are the leading cause of bankruptcy. The average American will have more than $200,000 in unsecured medical debt by the time they turn 65. Research shows that most adults express fear about the financial impact of a medical crisis or illness on their lives. And for good reason: Americans now owe over $300 billion in medical bills. According to a recent report from the Center for Disease Control and Prevention (CDC), this figure has tripled since 2003. There is no one way to reduce your medical debt, but there are some things you can do to make it easier when you’re dealing with a major illness or injury and how it affects your finances. We’ll take a look at five ways you can reduce your medical debt and get on firmer financial ground again after dealing with an illness or injury that led to lots of expensive treatments and medications.
1. Negotiate and Review Your Medical Bills
The first thing you want to do is take a close look at all your medical bills. You may be able to negotiate some of the charges and get the amount reduced. It’s important to read all the fine print on your bills to see what kind of payment plan or payment options each provider is offering. You want to make sure you’re paying as little as possible, but also paying the full amount as soon as you can. The last thing you want to do is fall behind on your medical bills and have them turn into collections. This will just make your financial situation worse. Paying bills on time can help your credit rating, which may make it easier to borrow money in the future should you need to.
2. Get Financial Help From Friends and Family
If you’ve exhausted all your other options, you may want to consider asking friends and family for a loan. You can promise to pay them back as soon as you’re able and with interest. This is a good option if you’re borrowing from people you trust, who will most likely be happy to help you out if you are able to pay them back in a timely manner. If you do decide to go this route, make sure you put the terms of the loan in writing so there are no misunderstandings about when you’ll be able to pay them back.
3. Check to See If There Are Any Grant Opportunities For You
If you’re dealing with a long-term illness, you may be able to get a grant to help cover the costs of your care. There are a variety of organizations that offer grants for medical expenses. You can start your search at the National Institutes of Health. They have a list of organizations that offer grants for individuals with a wide range of diseases, including cancer, multiple sclerosis, and sickle cell anemia. Even if you don’t have one of these diseases, you may still be able to find grant money to help you pay for your medical care. You can also review the websites of your state’s departments of health and human services to see what grant opportunities they offer.
4. Stop Automatic Payments To Doctors and Hospitals
Make sure you’re not automatically paying medical bills. It’s easy to forget to pay a bill, especially if it’s for a bill that you don’t even see. If you’re in a situation where you can’t pay for your medical treatments, then you need to get in touch with your doctors right away. Let them know that you’ll need to set up a payment plan that works for you. Be up-front with them about your financial situation and seek out payment plans that allow you to pay off the debt over time. If your doctor still insists on payment right away, let them know that you are willing to put the debt in writing and agree to make payments. This will hopefully prevent them from taking any legal action against you.
5. Take A Breather and Evaluate Your Options
Sometimes it helps to take a step back and look at your situation from a 30,000-foot view. Are there any bills that you can put off paying for a while? Do you have any assets that you can sell to generate some cash? Do you have a 401(k) or health savings account (HSA) that you can tap into? These can be a good way to get some cash without ruining your financial future. You may also want to consider getting a part-time job or taking on freelance work to help bring in some extra cash. This will allow you to make use of your skills and expertise while helping to generate the money you need to pay your bills.
Conclusion
Medical debt is a real problem, and it isn’t going away any time soon. Therefore, it’s important to be aware of ways to reduce your debt and protect yourself from financial distress. Some ways to reduce your medical debt include negotiating and reviewing your medical bills, getting financial help from friends and family, checking to see if there are any grant opportunities for you, and stopping automatic payments to doctors and hospitals. You can also take a breather and evaluate your options. No matter how you look at it, reducing medical debt is a challenge, no doubt about it. Nevertheless, it’s important to keep up with your debt payments.