Are your medical bills and late payment notices piling up on your table? You may be tempted to throw them away, but it won’t be the best solution. You can’t pretend your debt doesn’t exist, even if you think you can’t pay it.
Some 61 percent of consumers with medical debt said they felt stressed, while 49 percent lost sleep over medical bills and 23 percent were unprepared to pay off existing medical debt. Do not give up paying this debt. This is what happens if you don’t pay your medical bills.
What happens if you don’t pay the medical bills?
you will feel stressed
of course get a $200 Payday Loan No Credit Check it can be a suitable solution to cover your medical bills without a strict credit check. But if you already have a mountain of medical debt you can’t handle, you may be afraid of phone calls and collection offices.
Some collection agencies have aggressive tactics to return money unless you write them letters begging them to stop these behaviors or find an attorney to protect you. You may want to offer a reasonable monthly payment and negotiate this arrangement with the doctor’s office or hospital.
Having to apply for personal loans for this purpose also creates additional stress. According to research on Payday loans in the United StatesMost borrowers use payday loans to finance regular living expenses over the months, while the average borrower is in debt about five months a year.
Research shows that the first time consumers took out a payday loan, 69 percent used it to cover utility, rent, or credit card bills, while 16 percent used it as help with medical bills or car repairs.
Bills can go to collections
You must take immediate action if the hospital’s billing department threatens to send your bills for collection. Medical bills on your credit report will seriously damage your credit rating. You may need to work with the billing department of the doctor’s office or hospital if you want to avoid having your account sent to collections.
Your credit rating may suffer
The health care provider may not send your account to collection. However, that does not mean that the result will be positive. The hospital may report missed or late payments to credit reporting agencies, such as Equifax, Experian, or TransUnion.
Do medical bills affect your credit? Yes, once this information appears on your credit report, it moves into the payment history category. This category accounts for 35 percent of your credit score, so it can significantly lower your score.
You can find a suitable solution
You should do your best to come up with an agreement, payment plan, or type of agreement between you and the doctor’s office. The sooner you find a suitable solution, the better chance you have of avoiding going to collections or lowering your credit score.
You can get a credit card with a 0 percent introductory APR for a long period of time. This option also depends on your credit rating, ability to pay the debt on time, and other factors.
It is possible to buy extra time
Did you know that credit reporting agencies must wait 180 days before listing past due debt on your credit report? They count 180 days after receiving information about your unpaid medical debt. That is, you still have a grace period of six months to try to negotiate this debt and resolve it. Otherwise, it will show up on your credit report and hurt your score.
Is a Medical Loan Right for You?
Many people decide to take out a payday loan or medical loan to finance their bills. It is important that you define if applying for a medical loan can be a beneficial decision in your situation. It is useful if:
You can afford monthly payments
Many loans can be paid in installments or monthly installments. If you calculate the total amount of the loan and it fits comfortably in your budget, you can withdraw this money. Make sure you understand the loan terms and APR, and get a decent interest rate.
You consolidate your medical debt
Some consumers have high-interest medical bills that they want to consolidate. This decision will help you get a lower interest rate, manage your monthly loan payments, and pay off debt faster.
Do not apply for a medical loan if:
You qualify for special programs and grants
Consumers who qualify for assistance from government programs, grants and charities may not need to apply for a medical loan. Look for alternative solutions or request an emergency plan from your hospital before deciding to apply for a loan.
Borrowers with poor and fair credit (FICO score is less than 689) can get a high APR from the lender. As a result, you will have to pay more interest rates and the full amount of the loan may not be affordable for you. If you calculate the total amount and find it too expensive with APRs above 36 percent, it’s best to look at other options.
To sum up
You can’t neglect your medical debt. If you have a lot of medical bills, you need to find a proper way to get rid of them. Negotiating an emergency plan with your doctor’s office or applying for a medical loan can help you avoid stress related to the unpleasant consequences of non-payment.
If you don’t pay your medical bills on time, your debt can go to collections while your credit score can suffer greatly. If you want to maintain good credit and protect your credit history, follow our advice and think about the most appropriate solution for your current financial situation.