Medical debt has become a major source of personal debt among Americans in recent years. With so many uninsured or underinsured people, a simple trip to the emergency room can cost thousands. As one of the largest debt sources contributing to bankruptcy filings today, medical debt is a major burden for many families. Luckily, there are ways to resolve medical debt that does not have to put a damper on your financial future.
Like any other unsecured creditor, medical providers are somewhat limited in their collection efforts. They may be able to bombard you with collection calls and notices of credit damage, but they generally cannot liquidate assets or garnish wages without first obtaining a court order. This works to your benefit in one simple way: time.
Debt negotiation is a great tool that can help you lower payments, stop the delinquency process and ensure you are free from the threat of liquidation or garnishment. The most important thing to remember is your debt are your responsibility and you must get in touch with your creditor. When attempting to negotiate medical debt be sure to do the following:
- Request a review of benefits from your insurance company, having them take a second look at what was not covered
- Contact the medical provider to establish your intent to resolve the debts
- Request time and patience from the medical provider when having benefits reviewed by insurance carrier
- Outline an affordable payment plan and present it to the medical provider
- Send proof of financial hardship to medical provider to support your need for lowered payments
- Seek help from a debt negotiation lawyer if you desire representation