Credit Cards Medical Bills

Credit Cards Medical Bills

Credit cards medical bills are a sure way to get to the poorhouse. In a horrible economy, unexpected medical bills are sending families to the poorhouse. Many are accelerating that trip by using credit cards to finance their health care. In a world where people are asking me how to increase my credit score, financing medical bills will follow with credit report repair because you cannot keep up with the interest rates you'll be paying.

The reason for this is that many people believe that delinquent medical bills will damage their credit report score when in fact very few medical payments are reported to the three major credit reporting agencies. According to Maxine Sweet, of Experian, these accounts only account for .07% of their data.

Why then are Americans so quick to use credit cards to pay for medical debts when the interest rates on most credit cards will surely contribute to health problems when stress takes it's final toll? Would it help instead to employ a good credit repair software to help them to understand about debt? After all, who would ever mix credit cards & medical bills if they knew the danger?

I believe it is lack of financial education and lack of knowledge about options. Here are some other considerations you can employ when faced with unexpected and skyrocketing medical bills.

• A lot of non profit hospitals and medical centers have a budget set aside for the poor or indigent. Don't be afraid to ask for relief through this program.
• Arrange for payment options. You won't go into collection unless you fail to pay according to your agreement. These payment arrangements are much cheaper route than financing a debt with a credit card.
• Settle for a lump sum. remember the bill you are getting is the retail version of what hospitals charge. If they were being paid by an insurance company the bill would  not be anywhere near what consumers pay. You should be able to settle for 50% if you make a lump sum payment.
• Look at the fine print and get a professional to help you if necessary. Language like lifetime cap, co-pay and cost sharing is legal and medical language you are not supposed to understand. It might be worth a coupled bucks for a professional opinion.
• Local support groups have emergency funds set aside for community members. Don't be too prideful to ask for help. Everyone needs a helping hand now and then and receiving assistance gives you an opportunity to pay it forward.
• Disability insurance might be a good hedge against unexpected losses. Normally the cost is low, but the details will be in the fine print. Research something that seems right for you and your family.