We all know how bad it will be for our financial situation if our credit score is ugly. So if you’ve incurred medical bill debt in the past, you need to pay it off properly, or else the next time you apply for a loan, you’ll have a hard time getting approved…that is, if you still get approved.
At the same time, we also know how bad it will be for you to have a loved one admitted to the hospital and already buried in debt from mounting medical bills. For this reason, in this article we will show you how to prepare for such difficult moments. Here are some time-tested tips:
The first thing to correct is your attitude toward your medical bill debt. The moment you receive your medical statement, you know you need to pay it as soon as possible. Think of it like this: you are about to save a life. Be highly motivated to find easy, fast and legal ways to pay it. Keep this motivation strong and have it reflected in the way you handle money. If you’re having a hard time catching up, cut back, save every penny you can find, and most of all, 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 available cash. That is the total cash you have. See how you would fare against medical bills. If that’s not enough, you can choose to lend or pawn, which one you’d like to come first. In this case, you’ll need to round up all other assets besides cash to convert them to cash.
If you pawn, you can get the money quickly. Less hassle: that’s the biggest advantage. However, if you opt for the loan, you may need to sign more documents and approval may take a few days. Many medical loans have lower interest rates than pawnbrokers, and if you have a car or real estate as collateral, then you don’t have to give up the actual item, you just need to provide a certificate of ownership. Whichever option sounds good to you, go ahead. You can also try borrowing from friends or family without having to post collateral, or have other gadgets or jewelry to serve as such. It really depends on how much you need and how much time you really have.
Pay your medical bills as soon as you have the money. It doesn’t matter if you only wrote down a small fraction of the bills at first. The most important thing is that your debt is moving. And it’s shrinking. The interest can be really stifling and you don’t want that extra baggage.
Lastly, always have backup plans. What happens if you end up taking unpaid leave from work? (By then, your regular income will no longer arrive.) What if you have nothing else to pawn or give as collateral? What if bills suddenly skyrocket because a new complication is discovered? Don’t be left empty-handed and do your best not to be embarrassed to ask for help. Hospitals may forgive your medical bill debt, but other institutions may not.