We all know how bad it is for our financial situation when our credit history is bad. So if you’ve incurred a medical bill debt in the past, you need to pay it off properly, otherwise the next time you apply for a loan, you’ll have a hard time getting approved…that is, if you can still get approved.
In the same breath, we also know how devastating it will be for you when someone you care about is hospitalized and you’re already mired in debt from mounting medical bills. Therefore, in this article, we will show you how you can prepare for such difficult times. Here are a few proven tips:
The first thing you need to get in order is your attitude towards your medical bill debt. The moment you receive your medical bill, you know you need to pay it as soon as possible. Think of it this way: You are about to save a life. Be very motivated to find easy, fast and legal ways to pay it off. Keep that motivation strong and let it reflect in the way you handle money. If you’re admittedly struggling to catch up, cut down, save every penny you can find, and most importantly, keep your eyes peeled for plenty of earning opportunities.
Next, round up all the assets you have, starting with cash. If you have savings (good for you!), add that amount to your cash balance. That’s all the cash you have. See how that would stack up against the medical bills. If it’s not enough, you can choose to borrow or pledge whichever you want to get first. Here you would have to round up all other assets except cash to convert them to cash.
If you pawn, you can get the money quickly. Less effort – that’s the ultimate benefit. However, if you decide to take out a loan, you may need to sign additional papers and approval may take a few days. Many medical loans have lower interest rates than pawnshops, and if you have a car or property as collateral, you don’t have to give up the actual item, just provide proof of ownership. Whatever sounds good to you, do it. You can also try borrowing from your friends or relatives without having to post a security deposit, or have other gadgets or trinkets serve as such. Really, it depends on how much you need and how much time you actually have.
Pay your medical bills as soon as you have the money. It doesn’t matter if you only made a small fraction of the bills at the beginning. The most important thing is that your debt is on the move. And it’s shrinking. Interest can be really suffocating and you wouldn’t want that extra baggage.
Finally, you always have backup plans. What if you end up taking unpaid leave from work? (Your regular income won’t come by then.) What if you have nothing else to pledge or provide as security? What if bills suddenly skyrocket because a new complication was discovered? Don’t leave yourself empty-handed and try not to be ashamed to ask for help. Hospitals can forgive your medical bill debt, but other institutions may not.
Thanks to M. Baylor
