In these tough economic times, it has become even more difficult for people to meet the needs of daily living in the United States, not to mention the costs of paying medical and hospital bills. This article will review some of the options people commonly look to when it comes to paying for their medical bills and unexpected health expenses.
Perhaps the most common option considered by people facing difficult medical situations is bankruptcy. However, a survey conducted by researchers at Harvard University found that more than half of all filings for bankruptcy in the United States resulted from costly declines in health. This sadly shows that bankruptcy has become a common cause of medical debt, as well as a common solution to such difficulties.
However, even though it has become quite common to use bankruptcy as a way of paying for medical debts, it is not necessarily the best method when it comes to your future financial profile, as future lenders and potential employers rarely take kindly to people with bankruptcy histories. Furthermore, since laws regarding bankruptcy were reformed in 2005, a larger number of consumers have found themselves enmeshed in a payment plan form of bankruptcy, which means that people afflicted with bankruptcy don’t simply have to deal with harsh credit consequences, they also have to pay back a small portion of their debts.
Another option frequently considered by people who find themselves in the dire circumstances of requiring assistance with their medical bills is medical debt consolidation via the home equity of the borrower or borrowers. However, because it is difficult to pay for your medical challenges in advance unless you were fortunate enough to have invested in insurance, this is not often an option for the majority of consumers.
Similarly, the majority of consumers simply don’t have the necessary income and equity to pay their bills off through some form of a home equity loan. And even if you are among the very few who does have the equity necessary to carry out such a process, it is not usually a good idea to risk your equity in such a situation. This is particularly true because you tend to pay back your medical debt through interest, and the majority of medical bills don’t inherently charge interest by themselves, which makes the equity plan a waste of money.
This is why medical debt reduction, settlement, and negotiation is likely to be your best choice. Fortunately, Franklin Debt Relief has a “new deal” program that might be the best way for people dealing with lots of bills to reduce the amounts of debts they are carrying without having to deal with the negative consequences of bankruptcy. Through successful debt negotiation, it’s possible to both lower money owed and debt free time frames, making this the best option for most people.