Based on research, it has been revealed that more than 50% of the bankruptcies has been caused due to medical debts. This is a point where we come to an idea that as a lot of people tend to become bankrupt due to medical issues! Now let us analyze a few facts related to medical debt consolidation.
Why and how you need to consolidate your medical bills?
Hospitals charge zero interest on these debts, and as a result, if you analyze the money saved, you would get to know that if you pay your bills via those credit cards, you would be on again. If you have any medical bills to be paid, you can better use up funds from these debts consolidation loans to pay your bills.
A few reasons to consolidate these debts -
1. All made into one - here you don’t have to worry about multiple bill payment simply. You can have them all together in one account and reduce tension and confusion.
2. Low down the interest rates - You can cut down the interest rates charged otherwise.
3. Quick payment of debts - We all dream to get ourselves cleared out of all debts! Choosing debt consolidation loans helps you in the same.
4. You get to deal with the deadline that is chosen by you - Most of the institutions provide this education about the management of debts, where they train you about how to attain goals and cover your financial requirements.
Medical debts are the most frequent kind of loans to be consolidated along with payday debts, credit card bill payments, etc. For debt consolidation thoughts it is better to check out the debt management course
Signs that make you realize the need for consolidation -
You tend to spend a large amount of money in dealing with bills more than what you are earning; in this case, you should definitely go for consolidation.
When you find a lot of bill payment reminder or alerts in your mail etc., this is the option which fits your agenda.
Now let us check out a few benefits before going for medical debt consolidation
1. You get to combine your medical debt payment with other bills, and this helps in staying organized and sticking to your goals.
2. Practically, if you add medical debts to your management program, you would notice that there is a higher consistency in payment.
3. And as you are organized and consistent in paying your bills on time, this would boost your credit score!
What all you can expect from a medical credit institution that will be for nonprofit?
1. Lesser monthly payments.
2. You wouldn’t have to face any legal complications.
3. If you are late to pay your monthly payments, you wouldn’t have to really pay a huge amount, and this makes it more attractive.
Now let us take a look at the classification of debts
Debts can be secured and non-secured
A debt you have to pay is secured if you set apart an asset to it.
If you don’t actually have kept an asset while availing, then it is unsecured.
What is it that you should keep handy before approaching any financial institution?
1. Be ready with your latest credit card statements.
2. Produce all your bills - receivable and payable
3. The total income of your household.
In short, medical consolidation has to be used up if you feel your medical expenses are going overboard!
Before you go on to choosing a consolidation plan, you have to keep in mind these points.
1. The main and foremost concern is the thought that, will these consolidation plans help you solve the issue of debt settlement or they just lengthen the time period for so
2. Does it help you with your current and future situation and does it actually make some practical sense?
3. Get a thorough reading on the terms and conditions. Most of the people tend, and these lead to issues and legal complications and commit to these terms only if you are sure about meeting them.
Now, let us take a look at how to use these debt consolidations for paying off medical debts?
One of the main facts behind this medical bill consolidation is that, even though it offers zero interest rate, people tend to pay them off by using their credit card, and this amount gets piled up and added, and you got to pay your credit card bills till eternity! Along with their high interest rates.
And therefore, you are not supposed to commit a grave mistake by paying off your medical bills from your credit account.
What all you can expect from debt consolidation?
If you tend to go for data consolidation, it will boost your credit score and ratings.
Tenure - these plans take up to three to six years, you would be able to take up a negotiated payment and improve the credit and CIBIL score.
Collection of these medical debts
Even if you are very careful with the terms and conditions, you might even get to trouble from those insurance companies. You got to deal with the terms and conditions with the utmost care!
Now the main question - will these medical debts get to become a burden??
If you feel these debts get you to trouble, let us check out some other ways!
Payment plans
If you are rather sure that you won’t be able to pay off these by a single payment, you can get them broken to multiple payments.
Go for medical credit cards
Have you ever heard about these medical credit cards? The best thing about these credit cards is that there are no interest rates for the initial one year. A zero percent interest card would be just a great option.
If you feel that the tenure you stay in hospital is high, then you can go for hiring a medical advocate. This advocate would check your bills and would help you with reducing the errors and get you charged lesser.
